Investors bet on a rising underlying asset and pay only a fraction of the price, but participate fully in performance.

If the underlying asset rises by one franc, a Turbo Call Warrant (with a 1:1 subscription ratio) also rises by one franc. If the underlying asset falls, the Warrant falls accordingly. The product strike is also the knock-out and, in the case of the Turbo Call Warrant, is below the underlying asset price. The smaller the difference between the strike/knock-out and the underlying asset price, the riskier the Warrant.

The following formula can be used to calculate the intrinsic value of a Turbo Call Warrant:

Intrinsic value of a Turbo Call Warrant = (current underlying asset price – strike)/subscription ratio

A subscription ratio of 10:1 means that 10 Warrants are required to cover the underlying asset once, which makes the Warrant cheaper and more flexible to trade.

The total price of the Warrant consists of the intrinsic value and the premium, which includes financing and risk costs.

Investors who expect prices to fall can profit disproportionately with Turbo Put Warrants. The strike/knock-out is above the current underlying asset price. The intrinsic value is calculated from the difference between the strike/knock-out and the underlying asset price, divided by the subscription ratio.

Turbo Put Warrants mirror the movement of the underlying asset almost one to one, but in reverse. If the underlying asset falls by one franc, a Turbo Put Warrant (with a 1:1 subscription ratio) rises by one franc and vice versa. The issuer sells the underlying asset on the futures market and invests the capital to earn interest, which can theoretically lead to a discount. In practice, Turbo Put Warrants usually contain a small premium due to financing costs, risk premiums and expected dividends. For underlying assets in other currencies, the exchange rate must be taken into account.

The knock-out barrier of a Turbo Warrant corresponds to the strike and is decisive for how it works. If the underlying asset touches the barrier, the Warrant immediately expires with no value, resulting in a total loss. The distance between the knock-out and the underlying asset price is therefore crucial. The value of the Warrant rises disproportionately if the desired price performance is achieved and falls sharply if the price approaches the knock-out. Investors can determine the risk based on the difference compared to the underlying asset price. The large selection of products on the Swiss market allows you to make a precise choice according to your own risk profile.

Turbo Warrants have a strong leverage effect, which shows how much more the Warrant moves compared to the underlying asset. With a leverage of 5, the Warrant changes by 5% in the event of a 1% movement in the underlying asset. The leverage works both ways: A fall in the value of the underlying asset leads to disproportionate losses in the case of a Turbo Call Warrant. With a Turbo Put Warrant, losses are incurred as soon as the underlying asset rises. The closer the knock-out barrier is to the underlying asset price, the higher the leverage and the risk of a knock-out. A knock-out that is further away means lower leverage and lower risk.

Turbo Warrants are flexible investment instruments that enable investors with an affinity for risk to invest in an underlying asset with leverage. Turbo Call Warrants bet on rising prices, Turbo Put Warrants on falling prices. The knock-out plays an important role: In the case of a Call Warrant, it is below the underlying asset price; in the case of a Put Warrant, it is above. If the knock-out is reached, the Turbo immediately expires with no value. Due to this risk, Turbo Warrants are particularly suitable for experienced investors with a high risk tolerance.

A fundamental feature of Turbo Warrants is the knock-out, which does not exist with classic Warrants. This makes Turbo Warrants cheaper and increases the leverage. However, the knock-out entails the risk that the product will expire with no value when reached. In the case of classic Warrants, the level on the expiry date determines the repayment, so that a turnaround is possible. The knock-out reduces the influence of volatility on the value of the Turbo Warrant, whereas it plays an important role with classic Warrants. Turbo Warrants and Mini-Futures are similar, but with Mini-Futures the knock-out differs from the strike, which allows for a small residual value in the event of stop-loss events. Factor certificates have a constant leverage and are path-dependent, as they reflect the daily change in value of the underlying asset multiplied by the leverage.

The knock-out is central for Turbo Warrants. The closer it is to the underlying asset price, the greater the leverage and the higher the risk. If the underlying asset reaches the knock-out, the term ends and there is a total loss. Investors can control the risk/reward profile by choosing the knock-out.

With a Turbo Warrant, investors increase the risk through leverage, which can lead to disproportionately high losses if the underlying asset does not perform as desired. If the underlying asset reaches the knock-out threshold, the Warrant immediately expires with no value. Therefore, only experienced investors who follow the markets regularly should invest in Turbo Warrants, especially in volatile phases. Please also note the issuer risk: In the event of the insolvency of �۶���Ƶ AG, the capital invested may be lost.

Turbo Warrants are flexible and liquid investment instruments that enable disproportionately high profits with a low capital investment. They are suitable for equities, indices, commodities and currencies. With Turbo Call Warrants, investors bet on rising prices; with Turbo Put Warrants, investors bet on falling prices. Particularly suitable for short-term trading strategies, they offer quick return opportunities through low capital investment and continuous stock market trading. Turbo Put Warrants are also ideal for portfolio hedging. However, they involve high risks: if the underlying asset moves in the wrong direction, there is a risk of high losses or even a total loss if the knock-out is reached.