Tracker Certificate — Bull
One for one with the underlying, often an index or a basket that is hard to buy directly.
Payoff at maturity
Move the parameters; the product formula and its building blocks are recomputed from the same engine that is tested against the workbook.
- Product
Redemption 100 %
Per 10'000 of nominal
| Underlying at maturity | Level | Redemption | Amount | Gain / loss |
|---|---|---|---|---|
| −30 % | 70 % | 70 % | 7'000 | −3'000 |
| unchanged | 100 % | 100 % | 10'000 | +0 |
| +30 % | 130 % | 130 % | 13'000 | +3'000 |
Coupons are shown as paid at maturity together with the nominal. Costs, taxes and the price you paid are not included.
Data table and formulas
Tracker Certificate - Bull (1300): redemption at maturity for an underlying at 0 % → 0 %; 100 % → 100 %; 200 % → 200 % of its initial level.
| Series | Formula | 0 % | 25 % | 50 % | 75 % | 100 % | 125 % | 150 % | 175 % | 200 % |
|---|---|---|---|---|---|---|---|---|---|---|
| Long Underlying | S | 0 | 25 | 50 | 75 | 100 | 125 | 150 | 175 | 200 |
| Product | S × 1 | 0 | 25 | 50 | 75 | 100 | 125 | 150 | 175 | 200 |
Largest difference between the sum of the blocks and the product formula over the grid: 0.0e+0.
How it is built
Each block drawn on its own, then added. The last chart is the sum, and it is identical to the product line above.
- Long UnderlyingS
- ProductS × 1
Largest gap between the sum of the blocks and the product formula on this grid: 0.0e+0. The same identity is tested for every product and scenario in the site's test suite.
Construction, as listed in the workbook
- Long Underlying (Zero-Strike Call)
In plain English
A tracker is a zero-strike call: an option with a strike of zero is worth exactly the underlying, so the certificate moves one for one with it. There is no bond, no sold option and no barrier, which is why no view on volatility is needed.
Its purpose is access: a basket, a theme or a market you cannot hold directly, wrapped as one security. The workbook ignores fees and dividend treatment; in practice both matter over long holding periods.
Chances and risks
Chances
- Unlimited participation.
- Access to baskets and themes in one line.
- Transparent pricing.
Risks
- Full downside of the underlying.
- Issuer credit risk, which a direct holding does not have.
- Fees and dividend treatment reduce the return.
Who it fits
- Investors who want direct exposure to a theme or basket.
Who it does not fit
- Investors who want any kind of protection or income.
Features that can be added
Cross-category features from the workbook that issuers attach to this type.
Nearby on the map
- 1300Participation ProductsTracker Certificate — Bear
Gains when the underlying falls, loses when it rises; worthless once the underlying reaches the reverse level. - 1310Participation ProductsOutperformance Certificate
Moves one for one below the strike and faster than the underlying above it. - 1320Participation ProductsBonus Certificate
At least the bonus level at maturity if the barrier was never touched; a plain tracker if it was.Barrier - 1330Participation ProductsBonus Outperformance Certificate
A bonus certificate with extra participation above the strike.Barrier - 1340Participation ProductsTwin-Win Certificate
Gains from a rise and from a moderate fall; a plain tracker once the barrier is touched.Barrier