YIELD BOOSTERS

A derivative is a financial security or instrument that derives its value from underlying assets, such as commodities, currencies (including crypto), stocks, bonds, market indexes and more. The price of the derivative is determined by fluctuations of those assets.

At Swissquote, Yield Boosters refer to Barrier Reverse Convertibles (BRC). The Barrier Reverse Convertible, or BRC, is one of the most popular yield enhancement products in Switzerland. BRC is a special variant of the classic reverse convertible, which sees the holder give up potential upside exposure to an underlying asset in exchange for an enhanced coupon. The holder also avoids downside exposure, unless a predefined barrier is broken through.

A sideways trending market is the best scenario for BRC as the product will always outperform its underlying asset on the downside, and will also outperform if the asset doesn’t rise by more than the coupon. 

The underlying is a stock or bond on which derivatives (such as futures, ETFs, and Swissquote’s Yield Boosters) are based. Any fluctuation or movement of the underlying will affect the pricing of the derivative.

The maturity date is the agreed date that an investment ends: the principal is repaid and interest payments stop. The term is most commonly used for bonds, but is also applied to Swissquote’s Yield Boosters. 

A coupon is the amount of annual interest paid on our Swissquote’s Yield Boosters or on bonds. Expressed as a percentage of the face value, the amount is paid out periodically from the issue date until the maturity date. 

A BRC typically provides a better performance than its underlying product in all scenarios except a sharp price rise above the return cap.

You can cancel anytime by phone during our opening hours while the subscription period runs – you are only charged once the BRC is allocated to you at the end of the subscription period.

Note: Swissquote also reserves the right to cancel a BRC offer during the subscription period, in which case you will be informed by the end of the subscription period.

Structured products issued by Swissquote Bank Ltd ("Swissquote") are claims against Swissquote in the form of uncertificated securities (the "Structured Products"). In accordance with CISA, structured products are not deemed to be collective investments schemes according to the Collective Investment Schemes Act of 23 June 2006 ("CISA") and are therefore not subject to authorization or supervision by the Swiss Financial Market Supervisory Authority ("FINMA").

The information and details on Structured Products issued by Swissquote mentioned on this website do not constitute an offer, a transaction strategy or advertising materials. Nor should they be interpreted as a solicitation or offer to buy or sell any financial instruments in any jurisdiction whatsoever. The information provided is general in nature. It does not take account of investor’s investment objectives, the composition of their portfolio, their financial situation or any specific needs or requests.

Before entering into a financial transaction, investors must check that the information provided is appropriate to their personal circumstances in terms of legal, regulatory, tax and other consequences, and should seek the assistance of a professional adviser, where necessary. Past performance is not a reliable indicator of and provides no guarantee in relation to future results. Investors confirm that they are aware of the risks inherent in Structured Products trading, such as but not limited to, currency risk, interest rate risk, market risk, concentration risk and issuer risk, and are aware that financial transactions may be highly speculative and may result in losses as well as profits.

Regarding Structured Products issued by Swissquote, and in contrast to collective investments, Swissquote is liable with its own assets and not with specifically protected assets. In addition to a potential loss resulting from a decline in the market value of the underlyings (market risk), the investor may in the worst case lose his entire investment if Swissquote becomes insolvent (issuer risk). The money invested by an investor in Structured Products issued by Swissquote does not benefit from the deposit insurance system.

To obtain further information about the risks involved, investors should read the brochure entitled "Risks inherent in trading financial instruments", as well as Swissquote’s Legal documentation.

None of the Structured Products issued or sold by Swissquote may be offered or sold within the USA, or to persons who are US citizens, are resident in the USA, or are required to pay taxes in the USA. Products and services of Swissquote are only intended for those permitted to receive it under local law.