Glossary - W

This section provides an explanation for some of the jargon used to describe structured retail products. If you would like us to add additional words then please let us know by clicking here.

Warrants

A derivative security that is similar to an option except it is issued by a specific financial institution and is listed on a stock or derivatives exchange.

Wealth Management Scheme

This is the name used in China for a purchase agreement (contract) specifying the investment details (strategy, expected return, term) of a specific type of retail investment product typically sold via local banks. Where the investment is offshore this would encompass QDII products.

Whale

A return based on a fixed participation in the rise of the underlying, averaged by the final level of the underlying as opposed to the initial level, used in the corresponding standard call option.

Worst-of option

A worst-of option is an option that is exercisable against the worst performing of a given number of underlying shares or indices. For example a call option on the worst of the FTSE100 and S&P500 would pay out on the index that rose the least during the term of the option. See also Best-of option.

Wrapper

A wrapper is a term used to describe the form in which a structured product, or any investment product, is sold. Typical structured product wrappers are Individual Savings Accounts (ISA)s, Deposits, Life Bonds, etc.