Discount certificates: A favorable entry level

With discount certificates you buy with a price rebate. Find out more about the advantages. 

Three reasons for discount certificates

  1. You get a price discount on the respective underlying, for example an equity.

  2. The discount serves as a security cushion.

  3. With these instruments can put you on the winner’s side in markets moving sideways.

Winners and losers

Products at a discount price

An old merchant’s rule would have it hat the profit is in the buying. This also applies to financial products, the prime example being discount certificates, which are classed as investment products. With these instruments you invest in an underlying, for example an equity or an index – namely at a cheaper price, hence the word discount. In return, your profits are limited: You only lock into the price performance up to a pre-defined cap. For this reason, discount certificates are suitable in particular in markets that are tending sideways. By contrast, if things are heading north fast, then you would do better with a direct investment in the underlying. Discount certificates really come into their own when prices are slipping slightly: Thanks to the discount there’s a safety cushion through to maturity.

Börse Stuttgart is the largest German exchange trading hub for certificates. Here, you can enjoy selecting from a wide range of discount certificates those products with the underlying you want and the risk profile that fits you – and trade them from 8 a.m. to 10 p.m.

Most frequent trades