CERTIFICATES TRADE AT CAPTRADER

Certificates are leveraged financial products issued by a financial institution. Legally, they are bearer bonds, i.e. you lend money to the issuer by purchasing a certificate. The price development of the security is linked to the price development of an underlying asset. There are different types of certificates, which can be used for different purposes.

Certificates are products for private traders and are particularly suitable for short to medium-term oriented active traders. Due to the enormous variety of products, a certain basic knowledge and experience is necessary to trade successfully with certificates.

The pricing of a warrant is not linear to the price development of the underlying. The reason for this is that the volatility of the underlying also has an influence on the price of the warrant. Certificates, on the other hand, develop linearly with the price of the underlying. In addition, certificates do not have an expiration date and therefore do not suffer any loss of time value.

Certificates as well as CFDs are trading instruments whose price development depends on that of the underlying asset. While certificates are issued by a bank and are bearer bonds, a CFD can be traded directly at a CFD broker and represents a kind of contract between broker and trader.

Certificates are issued by banks and can be traded over-the-counter directly with the issuer. They can also be traded on some stock exchanges. In particular, the Frankfurt Stock Exchange and the Stuttgart Stock Exchange with its EUWAX trading segment are well-known trading venues for certificates.