Bid Ask | ||||||
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/product/detail/index/isin/CH0510110007 51011000 | Long Factor Certificate | Lonza | 12x | 0.207771 | CHF | 5.0415.191 |
/product/detail/index/isin/CH0510110015 51011001 | Long Factor Certificate | Zurich Insurance | 12x | 0.151487 | CHF | 4.925.07 |
/product/detail/index/isin/CH0510110023 51011002 | Short Factor Certificate | ABB | 12x | 1.833222 | CHF | 3.1493.179 |
/product/detail/index/isin/CH0510110031 51011003 | Short Factor Certificate | Adecco | 8x | 0.561887 | CHF | 4.374.47 |
/product/detail/index/isin/CH0510110049 51011004 | Short Factor Certificate | Logitech | 12x | 1.032564 | CHF | 3.8924.042 |
/product/detail/index/isin/CH0510110056 51011005 | Short Factor Certificate | Novartis | 12x | 0.457667 | CHF | 3.6583.708 |
/product/detail/index/isin/CH0510971390 51097139L12DKU | Long Factor Certificate | Deutsche Bank | 12x | 7.142864 | CHF | 4.955.25 |
/product/detail/index/isin/CH0510971408 51097140L5SISU | Long Factor Certificate | Siemens | 5x | 0.213635 | CHF | 5.495.51 |
/product/detail/index/isin/CH0510971416 51097141L8TLSU | Long Factor Certificate | Tesla Inc | 8x | 0.073362 | CHF | 3.093.15 |
/product/detail/index/isin/CH0511283944 51128394 | Short Factor Certificate | NASDAQ 100 Index | 21x | 0.007427 | CHF | 3.043.07 |
/product/detail/index/isin/CH0511283951 51128395 | Long Factor Certificate | Commerzbank | 12x | 9.371731 | CHF | 4.914.92 |
/product/detail/index/isin/CH0511283969 51128396 | Long Factor Certificate | Tesla Inc | 8x | 0.072605 | CHF | 3.053.14 |
/product/detail/index/isin/CH0511312008 51131200 | Short Factor Certificate | Netflix | 10x | 0.137927 | CHF | 4.134.28 |
/product/detail/index/isin/CH0511312016 51131201 | Long Factor Certificate | Apple | 5x | 0.095558 | CHF | 5.065.12 |
/product/detail/index/isin/CH0511312024 51131202 | Long Factor Certificate | AMD | 8x | 0.806968 | CHF | 3.693.99 |
/product/detail/index/isin/CH0511323112 51132311 | Long Factor Certificate | Wirecard AG | 10x | 0.400702 | CHF | 4.124.22 |
/product/detail/index/isin/CH0511323120 51132312 | Long Factor Certificate | Wirecard AG | 12x | 0.497251 | CHF | 4.074.17 |
/product/detail/index/isin/CH0512541829 51254182S25SWU | Short Factor Certificate | SMI PR Index | 25x | 0.009046 | CHF | 3.933.98 |
/product/detail/index/isin/CH0512541837 51254183L5ABBU | Long Factor Certificate | ABB | 5x | 1.236392 | CHF | 5.685.70 |
/product/detail/index/isin/CH0512541845 51254184L12ADU | Long Factor Certificate | Adecco | 12x | 0.926942 | CHF | 4.514.71 |
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.