Exchange-traded products or ETPs are securities where the value and price is linked to the development of an underlying stock, index, commodity or exchange rate.

An exchange-traded product (ETP) is traded as easily as a stock. They provide an opportunity to profit from price increases or price decreases in a market. It gives you exposure with built-in leverage at a moderate borrowing cost. Unlike exchange-traded funds (ETFs) exchange-traded products are issued with security in the issuer's balance sheet. This means that in addition to market risk, the investor also bears an counterparty risk to the issuer.

The risk in an ETP is generally high. You should familiarize yourself well with what it is before you invest.

In leveraged products, the number of shares to be shorted must be borrowed. A share loan will normally be subject to a borrowing cost measured in% p.a. of the value of the shares. This cost is therefore also reflected in products that provide a short exposure to equities or stock indices.

Note that the borrowing cost will depend on the number of times the shares in question have been shorted. For a x2 product, e.g. the borrowing costs are calculated twice (since shares are shorted for twice the amount of the product itself), for a x3 product the borrowing costs are calculated three times, etc.