Skip to content
All library documents

Turbo Warrants as Leveraged Knockout Certificates

Article Quant Q&A · Author: nonot1
Read the original

Summary

The document explains how German-style leveraged certificates with a stop-loss knockout relate to products known as turbo warrants. The answer groups these instruments with mini futures and notes that issuers may use labels such as turbo certificates, short certificates, or knockout certificates for broadly similar products. This terminology mapping helps readers recognize related leveraged products across markets and providers.

The discussion does not provide a pricing formula, payoff comparison, or historical performance analysis. It emphasizes that product details can vary by issuer, so the names should not be taken to guarantee identical terms. Data research also requires narrowing the question to a particular product and listing venue; exchange websites may offer pricing information, but coverage depends on the market and instrument selected. The document does not establish whether a direct American equivalent exists.

Key ideas

  • Turbo warrants, mini futures, and knockout certificates can refer to broadly similar leveraged products.
  • Issuer naming conventions vary, and product details may differ.
  • A meaningful pricing-data search needs a specified product and exchange or market.
  • The document does not confirm the availability of a direct US equivalent.

Tags

Derivatives pricingRisk managementExecution
Full text
# European turbo warrants


# European turbo warrants












Totally new to the world of quant finance, so perhaps this is an odd question...

Does there exist an American equivalent to the German style "knock out zertifkate"? (The name might be slightly wrong.)

Not even exactly sure what they are, but from what I did learn about their behavior, the nearest thing I could find on Wikipedia was: http://en.wikipedia.org/wiki/Turbo_warrant

If there is not an american equivalent, does anybody know where to get English language details and pricing history/data?

Thank you

## Answer by Karol J. Piczak (score 5)

https://quant.stackexchange.com/a/1122

I haven't encountered them, but if you mean "Hebel-Zertifikate" as defined on Wikipedia they just seem to be leveraged certificates with an obligatory stop-loss knock-out.

Those turbo warrants you mention are more or less the same as Mini Futures. Depending on issuer or some small differences, they can also come up as Turbo / Short Certificates (naming used by The Royal Bank of Scotland) or knock-out certificates.

So you can encounter many names for essentially similar/identical products.

Your pricing question is a bit too vague. There are so many products that you would have to define what you're interested in (preferably what market/exchange). You can browse through the websites of the exchanges where products you're interested in are listed. For example Wiener Börse has some pricing data for numerous certificates.

Shown in full with attribution under the source's licence. Licence: CC BY-SA 4.0 (Stack Exchange)

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.