Tracker certificate; more rarely, a purely underlying certificate

Certificate in the sense of a claim based on a specific underlying asset (reference base; underlying [asset]: Asset on which the transaction is based). Thus, the price of the certificate basically always corresponds to the reference base (a tracker certificate has the same payoff profile as the underlying asset or reference base upon which it is based. As such, there is no optionality involved in this product category, and there is neither cap nor protection; its risk is identical to the underlying asset(s): it tracks [it remains on track]). – Of course, in addition to the fees to the issuer of the certificate (management fee), a currency risk must also be taken into account in the event that the underlying asset and the invoice value of the certificate are based on different currencies (composite). – In general, a tracker certificate makes it possible to participate in the price development of an underlying asset without much effort (the investor does not have to go directly to the stock exchange via a broker in another country). – See option, quanto, certificate.

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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
E-mail address: info@ekrah.com
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