Turbocertificates 

It is a type of the investment instrument that belongs to the leverage products group. The most of turbo certificates are issued with an open end maturity with the fact that it has a predetermined size of lever.

If the underlying asset, for example a share, appreciates of 1%, then the bought turbo certificate with lever 3x causes the growth of the yield of 3%. In the opposite case, it leads to a 3% loss. The size of the lever does not have to be constant but it can change according to the development of the underlying asset. Conditions such as Knock- out and Knock – in barriers can be the part of the turbo certificates.

Certificates are used by investors who demand high yields, accept risk and do not want to (or do not have the possibility) to buy the underlying asset. Thanks to emission ratio, turbo certificates cost much less. Furthermore, they are used by clients who do not want to buy securities on credit (margin). It is a type of the instrument that belongs to the leverage products group.

It is a really high-risk product intended for very experienced investors.