Factor certificates: The trend is you friendThe leveraged securities show their strengths in clear market movements. How you can profit disproportionately.
Three reasons for factor certificates
- Due to the constant leverage effect, the performance is easily comprehensible.
- Disproportionate profits are possible in rising and falling markets.
- We assure trading quality.
Winner and loser
It depends on the factor
Factor certificates are securities with a leverage effect. With factor long certificates, you bet on a rising price and with factor short certificates on a falling price of a specific underlying asset. The principle is simple: the factor reveals how strong the leverage is.
Let's assume that you believe that a stock is marching upwards and decide on a long certificate with a factor of 5. If the price of the underlying stock rises by one percent on one day, the factor certificate increases by five percent. If the share price falls by one percent, the long certificate loses five percent in value. Factor certificates are a comparatively new product category that has established itself in recent years.
Trading quality assured
These products are particularly suitable for short-term trend phases. The special thing about them is that the leverage effect remains constant: The respective closing price of the reference value serves as the basis for the leverage effect of the following day.
You can trade factor certificates every trading day from 8 a.m. to 10 p.m. - and thus also react to developments in the USA, for example. Our trading experts ensure the quality of the buying and selling prices. This is particularly important for short-term investments, as a better price can significantly improve the performance of your investment.
If you are one of the more risk-friendly investors, you can use our Finder to find out which factor certificates are available for your favourite underlying.