Stock market glossary
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Certificates
Certificates are instruments issued by a bank that track an underlying asset, such as an index or a share, often with leverage or capital protection.
Fixed-leverage ones multiply the daily change of the underlying: with leverage 5 a 1% rise becomes about +5%, but the same goes for falls, and over several days the result is not simply the change multiplied by the leverage. Anyone buying a certificate also takes the risk of the issuer, the bank that issued it.
💡 On Fanta-Trade you will find BNP Paribas fixed-leverage certificates listed on SeDeX, with the issuer's bid and ask prices.
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