About knock-out products
Knock-out product is a catch-all term for leverage certificates which, depending on the issuer, are also referred to as waves, mini futures, classic/unlimited/BEST products, smart turbos or simply turbos. Knock-out products represent a category of securitised derivatives whose basic mechanism is essentially the same. However, the investor should consult the issuing terms and conditions for each product in order to understand its specific features and peculiarities.
As a rule, knock-out products can be used to speculate on the rising or falling prices of any underlying instrument, e.g. equities, indices, currencies, commodities or similar. Knock-out products that profit from rising prices generally have one of the following prefixes attached to their name: call, long or bull. On the other hand, knock-out products that bet on falling prices are given prefixes such as put, short or bear.