Moomoo Singapore Help Center-Introduction to Structured Notes
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      Introduction to Structured Notes

      1.What are structured notes?

      Structured notes are investment instruments issued in the form of notes. It combines fixed income products and derivative products to create a more innovative type of financial products. The issuer invests a portion of the principal in fixed income products and the remainder in derivative products. The return on structured notes depends on the performance of the underlying assets to which the notes are tied.

       

      2. Related terms

      Coupon
      For products with coupons, the total amount of coupons in one year is calculated by multiplying the face value by the coupon rate.

      Face Value  & Issue Price
      When investors buy structured notes, they need to pay an amount of money equal to the face value multiplied by the issue price. The issue price is usually 1 or close to 1.

      Underlying Asset
      The underlying assets are the investments to which the notes are linked. The prices of the underlying assets are the major factor determining the return on the notes.

      Knock-Out
      A knock-out event occurs when the underlying asset rises to a predetermined knock-out level. The note will be terminated in advance, and investors will receive the knock-out funds.

      Knock-In
      A knock-in event occurs when the underlying asset falls to a predetermined knock-in level. Investors may or may not lose their principal in part or in whole depending on the terms and conditions of the note and the performance of the underlying asset.

      Physical Delivery
      Contrary to cash settlement, physical delivery refers to the delivery of shares at a specified strike price when the note is terminated.