 FAQ
Outstanding products
Order our brochure
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| What is my investment objective and how do I expect the market to perform? |
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You expect the price of the underlying (such as a share or an index) to rise in the future. You are looking for an opportunity to enhance
the performance of your investment without running the risk of investing in a single warrant.
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Which product fits my needs?
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Leverage Certificates give you the possibility of doubling your profit if the price of the underlying on expiry has risen within a fixed price range
(Start - Cap). However, in return for this "benefit" the maximum gain of your investment is limited by a cap. The product combines two option
transactions with an equity purchase.
Due to the combination of different transactions in one product you can lower your transaction costs significantly. On expiry there are three possible
outcomes: If the closing price of the underlying is below the Start, you will take delivery of the underlying. If the closing price of the
underlying lies between the Start and Cap, you will receive a cash payment corresponding to the sum of the actual closing price and the difference
between the closing price and the Start. Finally if the closing price is above the Cap, you will receive a cash payment corresponding to the sum
of the Cap and the difference between the Cap and the Start.
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| I am willing to accept the following risks |
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If the share or index underlying the Leverage Certificate declines in value, the Leverage Certificate will depreciate. Leverage Certificates entail
similar risks to equity investments. If the underlying closes below the strike, you take delivery of the respective security and run the risk that
the security will be trading lower in the market.
Investments in derivative products involve particular risks. Interested persons should contact their financial advisor before investing in such products.
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| Do I have to pay taxes on this product? |
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Gains from investments in Leverage Certificates are treated as tax-free capital gains in Switzerland for individual investors.
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| Do I have to open an account at Banca del Gottardo to buy this product? |
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No. You can buy our Leverage Certificates from your bank.
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| I am an American citizen. Can I buy this product? |
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No. The products of Gottardo Financial Solutions may be bought by Swiss residents only. Further, they are not available to US persons. See our disclaimer for further details.
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| Do I have to hold this product to maturity? |
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No. Leverage Certificates can be bought and sold at any time during their lifetime.
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| What is in brief the advantage of Leverage Certificates over a direct investment? |
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On expiry you can double your gain if the price of the underlying increases within a certain range.
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| Do I profit immediately from a share price increase? |
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As the product combines an option strategy, the time value of the options will not fully reflect the price increase in the underlying security.
Thus an investment in Leverage Certificates is not as aggressive as a Call Warrant investment. If you expect the price of an underlying to rise
but you are not sure about the time horizon, an investment in Leverage Certificates might be more profitable since you do not lose as much
daily time value as with Call Warrants.
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| What happens when I take delivery of the underlying security delivered on expiry? Do I lose everything? |
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No. Instead of the certificate you hold the security in your portfolio. You can now sell the underlying in the market.
You run the risk that the security will be trading lower than the price at which it was delivered (strike price).
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| Where can I find current prices of this product? |
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Quotes for this product are published on our website and in some Swiss newspapers.
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Important legal information - Please read the disclaimer before proceeding.
This website is not intended for persons in jurisdictions in which (for reasons of residence, nationality or other reasons) the publication of or access to the site is not permitted.
Persons subject to these restrictions are therefore not authorised to access this website. Products and services shown on this website may not be available to persons resident in (or citizens of) particular countries.