Expected
yield per annum
19%
  • Minimal Investment amount 2700 USD
  • Expiration date: 30.09.2019
Underlying Assets MICROSOFT, Tesla, Xerox, ALIBABA, Hewlett-Packard
Currency USD
Expected yield, % per annum 19%
Low Barrier 70%
Volume of investments 2700 USD
Term of placement of the deposit up to 30.09.2019

The product with yield  19% in dollars per annum.

Such products are targeted at customers with a moderate risk tolerance, aiming higher profits. They are a great solution for those who seek high returns and are ready to bear a moderate risk for the chance to do so.

The product pays a coupon if the share prices are within a predetermined range. Otherwise, the coupon is not paid but it can still be paid in the following periods.

How the product works

Once the contract is concluded, the following parameters of the investment product are determined, among others: the basket of assets (underlying securities), the size of the coupon (yield), the period, and the barrier value. On the same day, the initial prices of all underlying securities included in the basket are recorded. New underlying asset prices are recorded at the end of each coupon period, which occurs every 90 days.


Conditions for receiving coupon payments:

If at the end of any coupon period except the last, the prices of all the underlying assets exceed their initial prices - the investor receives an agreed fixed coupon for the current period, as well as the coupons for all previous coupon periods in which the payment terms were not met. The investor also receives all invested funds and the product ceases to function.

If at the end of any of the coupon periods except for the last, the price of at least one underlying asset does not exceed the barrier value 70% -  the investor does not receive a fixed coupon for the current coupon period and the product continues to operate. If at the end of any of the following periods the prices of all the underlying assets prove to be above the barrier value, the investor will receive coupons for all previous zero-coupon periods.

Conditions for final repayment :

If upon the completion of the last coupon period (at the end of the product’s life) the prices of all the underlying assets are above the barrier value 70% -  the investor receives an agreed fixed coupon for the last coupon period and previous coupon periods to his brokerage account (if the payment terms were not met in previous periods). The originally invested funds are also returned to the investor.

If at the end of the last coupon period (at the Expiration date) the price of at least one of the underlying assets is below the barrier value 70% -  the investor is not paid a coupon for the last coupon period and the previous zero-coupon periods. The investor also receives the "worst" share at the initial price in accordance with the size of the original investment.

The commission for an investment product creation is 2% of the initial investment and is charged at the time of product expiration.

The parameters of the products are indicative and may vary depending on the market situation.

 

 

Examples:

There are 3 possible scenarios of how events can unravel:

1. Early redemption: the investor receives the invested amount (principal) + the Coupon for the first quarter.
2. Redemption with the payment of all coupons: the investor receives the invested amount + all the coupons.
3. Redemption without the last coupon at the price of the worst performed underlying security.
Attention!

The product yields shown in the examples and past financial performance do not guarantee future profits. All investment products are denominated in USD. The commission for an investment product creation is 2% of the initial investment and is charged at the time of product expiration. The expected yield of investment products is given in annualized percentage form.

Note:

The protective investment component is allocated to fixed income products (Eurobonds and deposit schemes at leading banks). NordFX cannot be held responsible for any potential risks associated with the default of Eurobond issuers or the bankruptcy or default of any of the banks in which the deposits are held.

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