Bid Ask | ||||||
---|---|---|---|---|---|---|
/product/detail/index/isin/CH0449359998 44935999ODBSHU | Long Factor Certificate | UBS Group AG | 8x | 2.196012 | CHF | 3.223.27 |
/product/detail/index/isin/CH0449360004 44936000ODBSJU | Long Factor Certificate | UBS Group AG | 10x | 1.236681 | CHF | 1.451.47 |
/product/detail/index/isin/CH0449360038 44936003ODASTU | Long Factor Certificate | Credit Suisse | 8x | 5.237882 | CHF | 8.358.45 |
/product/detail/index/isin/CH0449360046 44936004OFIAEU | Long Factor Certificate | Credit Suisse | 10x | 3.193955 | CHF | 4.064.11 |
/product/detail/index/isin/CH0449360053 44936005 | Short Factor Certificate | UBS Group AG | 5x | 1.545707 | CHF | 3.673.76 |
/product/detail/index/isin/CH0449360301 44936030FS5LGU | Short Factor Certificate | Logitech | 5x | 0.090267 | CHF | 0.780.79 |
/product/detail/index/isin/CH0449360327 44936032FS5LOU | Short Factor Certificate | Lonza | 5x | 0.027293 | CHF | 1.861.88 |
/product/detail/index/isin/CH0449360343 44936034FS5SRU | Short Factor Certificate | Swiss Re | 5x | 0.083339 | CHF | 1.821.83 |
/product/detail/index/isin/CH0449360350 44936035FS8SRU | Short Factor Certificate | Swiss Re | 8x | 0.036662 | CHF | 0.500.51 |
/product/detail/index/isin/CH0449360368 44936036FS5ABU | Short Factor Certificate | ABB | 5x | 0.388462 | CHF | 1.7411.751 |
/product/detail/index/isin/CH0449360376 44936037FS8ABU | Short Factor Certificate | ABB | 8x | 0.124869 | CHF | 0.3520.355 |
/product/detail/index/isin/CH0449360384 44936038FS5LHU | Short Factor Certificate | LafargeHolcim | 5x | 0.136349 | CHF | 1.411.44 |
/product/detail/index/isin/CH0449360400 44936040FS5SLU | Short Factor Certificate | Swiss Life | 5x | 0.014893 | CHF | 1.481.49 |
/product/detail/index/isin/CH0449360426 44936042FS5ADU | Short Factor Certificate | Adecco | 5x | 0.062719 | CHF | 0.780.79 |
/product/detail/index/isin/CH0449360442 44936044FS5NEU | Short Factor Certificate | Nestlé | 5x | 0.100757 | CHF | 2.102.11 |
/product/detail/index/isin/CH0449360517 44936051 | Short Factor Certificate | Logitech | 5x | 0.090267 | CHF | 0.7740.804 |
/product/detail/index/isin/CH0449360533 44936053 | Short Factor Certificate | Lonza | 5x | 0.027293 | CHF | 1.841.90 |
/product/detail/index/isin/CH0449360558 44936055 | Short Factor Certificate | Swiss Re | 5x | 0.083339 | CHF | 1.8111.841 |
/product/detail/index/isin/CH0449360566 44936056 | Short Factor Certificate | Swiss Re | 8x | 0.036662 | CHF | 0.4990.508 |
/product/detail/index/isin/CH0449360574 44936057 | Short Factor Certificate | ABB | 5x | 0.388462 | CHF | 1.7311.761 |
UBS Factor Certificates
UBS Factor Certificates enable investors who are willing to take risks to participate disproportionately in the price performance of an underlying asset (e.g. equities, indices, commodities or currency pairs). The Long Factor Certificate targets rising prices, while the Short Factor Certificate converts falling prices into gains. Unlike other leverage products, such as warrants or mini-futures, the leverage factor remains constant. For example, a factor certificate (10x long) mirrors the daily performance of the underlying asset with a constant leverage of 10. This manner of functioning makes it possible to adjust the strike price and conversion ratio on a daily basis.
Of course, the product loses value disproportionately if the underlying asset moves in an adverse direction. As soon as the price of the underlying asset reaches the strike price or falls short of it (Long Factor Certificate) or exceeds it (Short Factor Certificate), a knock-out event occurs. In this case, the product expires without value with immediate effect and the holder suffers a total loss. However, there is no obligation to make margin calls, as is usual in forward transactions, for example.
In order to reduce the risk of loss in highly volatile market phases, the Factor Certificate includes a reset mechanism. This can be used in the event of strong price fluctuations in the course of a trading day (intraday). The crucial aspect is the reset barrier. It lies above the strike price in the case of the Long Factor Certificate, while it is positioned below the strike price for the short variant. If the underlying asset touches or breaches this reset barrier, the strike price is adjusted: downwards for a Long Factor Certificate or upwards in the case of a Short Factor Certificate. The conversion ratio is recalculated at the same time. In this way, a new trading day begins in simulation, in which the Factor Certificate starts with a likewise lower barrier (long) or higher barrier (short). However, this does not avert the risk of a knock-out.
Unlike warrants, volatility has hardly any impact on the performance of Factor Certificates. A further distinguishing feature is the unlimited duration.
The fact that the leverage effect of the Factor Certificate applies on a daily basis results in path dependency. If the underlying asset of a Long Factor Certificate trends upward or that of a Short Factor Certificate trends downward, the investor can benefit disproportionately and obtain higher returns, depending on the selected leverage. If, on the other hand, the underlying asset moves in a sideways market, investors are at risk of incurring losses. This is especially the case if the underlying asset floats around its starting price for a relatively long period of time.
Investors must also take the issuer risk into consideration, since loss of the invested capital could occur if UBS AG becomes insolvent, regardless of the performance of the underlying asset and other market parameters.