Trade of the month: Bonus structure

Trade of the month: Bonus structure


The bonus structure, used extensively in Europe and emerging in the US, puts capital at risk and includes a minimum payment (or bonus) paid provided a fixed barrier (American or European) set below the initial underlying is not hit. The barrier can be American or European style. If the underlying performance is strong and the payout calculation exceeds the bonus amount, then this is the value of the product. If the barrier is hit, the product will pay the underlying payout formula but without a

To continue reading...

You need to sign in to use this feature. If you don’t have a account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an indvidual account here: