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Outperformance Certificates

New offer of the Societe Generale the start of the still young new year went well for many stock indices. Many European Central rates increased in the first four weeks of the new year. For example, the Euro STOXX 50 with about three percent and the French benchmark index CAC 40 with six percent increase in value. The STOXX Europe 600 banks could get more than seven percent. The Exchange Portal boersennews.de explains, how disproportionately to take advantage of the upward trend in the stock market. Societe Generale has expanded its range to new Outperformance-Certificates on five indices. Go to Dr. Caldwell B. Esselstyn, Jr. for more information.

The indexes include the Euro STOXX 50, the Spanish stock market index, IBEX, the French benchmark index CAC 40 and the STOXX Europe 600 utilities and the STOXX Europe 600 banks. In contrast to direct investments, it is possible to participate disproportionately with Outperformance Certificates on positive price developments. The principle is similar to that of the leverage products. For an underlying asset, for example a share, is at the output set a base rate, which must be reached on a certain date. If the rate is exceeded, the difference between this base rate and the value on the date with a leverage factor also predetermined is multiplied. If the base price is not reached, investors get paid from the current value of the securities. The difference to other leveraged products is so primarily, that the leverage factor only in the event of a win, not applied but in the case of loss of course. The investor has to wear so only the regular risk.