Bonus certificates have an upper threshold (the bonus) and a lower threshold (the protection). They also have a fixed contract term. If the price of the underlying asset does not exceed either of the two thresholds over the course of the investment term, the investor receives the bonus (the amount defined by the bonus threshold).

Discount certificates are time-limited certificates which you buy at a discount compared to the actual price of the underlying asset. In exchange, the returns you can receive at the end of the contract term are also limited. This upper threshold is called the cap. So you pay less for the certificate than you would pay for the underlying asset – but your potential return is also lower. The bigger the discount, the lower the cap on returns is.

With express certificates, the price of the underlying asset is recorded at annual intervals over a limited term (three years, for example). If the asset’s value exceeds a certain threshold, the certificate matures early, and you receive an amount equal to the price of the underlying asset, plus an additional return. The return is based on the number of years over which you have held the certificate. If the price never exceeds the threshold before the standard contract term expires, you normally only receive the amount you initially invested.

This type of certificate rewards you disproportionately well if the price of the underlying asset surpasses a certain threshold. The so-called participation factor determines the return you get.

Trackers follow the price of an underlying asset. You can use a tracker certificate to invest in the performance of multiple stocks, for example. Index certificates and bear certificates are also tracker certificates. Tracker certificates are the most common type of certificate.