proverb
"Drink nothing without seeing it; sign nothing without reading it."
Spanish proverb
The golden rule of structured products
Derivative Academy
A structured guide to derivative index strategies — from the basic categories to advanced product analysis.
About the Derivative Academy
The Derivative Academy provides a comprehensive educational overview of structured derivative products based on financial market indexes. It covers the four main product categories — capital protection, yield enhancement, participation and leverage — and explains how each product reshapes the risk and return profile of an underlying index investment.
The content is based on an academic textbook on derivative index strategies and is designed for investors who want to understand these products before using them — following the Spanish proverb: "Drink nothing without seeing it; sign nothing without reading it."
Shaken, Not Stirred — A Guide to Derivative Strategies
What derivative index strategies and cocktail menus have in common — an overview of the four main structured product categories.
Available Chapter 1How to Assess Risk and Return
Payoff, profit and return measures. Volatility, value-at-risk, participation and leverage — the chemistry of structured products.
Available Chapter 2How Derivatives Change During Their Lifetime
Intrinsic value, time value, probability distributions at issuance vs maturity, and the risk matrix — how a structured product evolves over time.
Available Chapter 3Ingredients of Structured Products
Underlying assets, fixed-income instruments, standard options and barrier options — the building blocks of every structured product, with call-put parity and knock-in/knock-out equivalence rules.
Available Chapter 4Capital Protection Products
How convex payoffs work, the role of options in providing downside protection, and the trade-off between protection level and upside participation.
Available Chapter 5Yield Enhancement Products
How concave payoffs work, the discount certificate and reverse convertible, and the role of sold options in generating additional income.
Available Chapter 6Participation Products
Tracker certificates, bonus certificates and twin-win structures — how to take linear or non-linear positions in an underlying index.
Available Chapter 7Leverage Products
Warrants, mini-futures, constant leverage certificates and spread warrants — how leverage amplifies returns and losses.
AvailableStructured products are regulated and classified differently by market. These are the authoritative national and European industry bodies:
"A good writer is not, per se, a good book critic. No more than a good drunk is automatically a good bartender."
Jim Bishop
American journalist & author
For educational purposes only. Not investment advice. Derivative products carry significant risks and may not be suitable for all investors.