Market value = Face Value * Last Price
Note:
1. The market value is for reference only when trading structured notes, and the last price is a reference price provided by the issuer based on market conditions.
2. The actual returns depend on factors such as coupon payment, maturity, and knock-out funds.
The face value of the note is usually the principal you invested.
The face value you hold is the basis for the calculation of coupons and profit or loss.
We adopt two methods for cost calculation: diluted cost and average cost. Applying different methods will lead to different cost results and rate of return.
Diluted Cost
Diluted Cost = (Total Amount Bought During the Holding Period – Accrued Coupon – Knock-Out Amount – Maturity Amount) / Face Value Held
Average Cost
The average cost reflects the cost of the current position at the time of subscription. It changes as you increase the position afterward. A cash dividend will lower the average cost by deducting the dividend amount from the average cost.
Average Cost = (Face Value Before Current Purchase × Average Cost Before Current Purchase + Amount Paid for Current Purchase) / Post-Purchase Face Value
For structured notes, we only display the return of non-principal-guaranteed products as a reference.
Using diluted cost for calculation:
Return on Position = Position P/L / (Diluted Cost * Face Value Held)
Using average cost for calculation:
Return on Position = Position P/L / (Average Cost * Face Value Held)