FUTU HK Help Center-Introduction
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Introduction

1. What are structured products

Structured products are investment instruments issued as notes, combining fixed income and derivative products. The return on structured products depends on the performance of the underlying assets to which they are linked.

 

2. Related terms

2.1 Underlying

An underlying asset is the asset to which the structured product is linked, such as stocks and bonds. The product's maturity return depends on the performance of the linked underlying asset.

 

2.2 Knock-out

Some structured products have a knock-out mechanism. A knock-out event occurs when the underlying price reaches the knockout barrier on a knock-out observation day. For definitions of the knock-out event, observation period, and observation frequency, please refer to the product details page.

 

2.3 Knock-in

Some structured products have a knock-in mechanism. A knock-in event occurs when the underlying price reaches the knockout barrier on a knock-in observation day. For definitions of the knock-in event, observation period, and observation frequency, please refer to the product details page.

 

2.4 Physical delivery

In contrast to cash settlement, physical delivery refers to settlement through assets such as stocks.

 

2.5 Market-making arrangements

Limited market-making arrangements are available for some structured products. You may redeem the product before maturity while market-making activities are in progress, as specified in the product documentation. Early redemption may result in a principal loss and additional fees.

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