The issuer company guarantees that the price of the certificate follows the underlying as stated in term and conditions of the investment product. Certificate is a derivative product it means that is derived from set price of the underlying. The issuer Company undertakes the second market liquidity this means that there is a possibility for trading with certificates during the stock trading period.
We can distinguish two main groups of the Certificates according to the risk associated to the investment and the required capital to the investment (budget constraint):
This certificate provides an unleveraged exposure to the underlying, this means that the investors participate on a ratio of one to one in the movement of the underlying. In these categories are index, bonus, discount, and capital-protected certificates.
They tend to be riskier because they offer leveraged exposure. But the required investment strategy is available through lower investment. These products are warrants, turbo or knock-out certificates and other exotic certificates.
- Transparent trading- stock exchange trading makes it possible that the prices are available for every clients who are able to follow easily the price movements
- Outstanding liquidity – the continuous trading makes possible for investors the day-trade (trading with securities within one day)
- Cost-effective investment product – the purchase of the product is fast and simple with stock exchange transaction
- Easy access to the different investment opportunities, due to the fact that underlying covers the whole range of global financial markets
- Limited loss – because in case of the riskiest product no more than the capital can be lost. There is no need to compensation of the capital even in case of the leveraged products
- Fast reaction to the changes of the financial market
To whom do we recommend?
To the clients who are able and will to take higher risk (experienced and professional investors) in order to achieve higher returns.
On the following homepages and on the homepage of the Issuer you could gather public information about the securities:
- OTP Fund Management
- OTP Funds portfolio report
- OTP Mortgages
- OTP Real Estate Fund
- Hungarian State Debt Management Agency/Államadósság Kezelő Központ (ÁKK)
- Hungarian National Bank/Magyar Nemzeti Bank (MNB)
- Budapest Stock Exchange/Budapesti Értéktőzsde (BÉT)
- Hungarian National Bank publications
- KELER Central Depository Ltd./KELER Központi Értéktár Zrt.