Structured deposit, also known as YieldEnhancementProducts, is an innovative deposit that combines interest rate with traditional deposit business. This product is suitable for customers who have high income requirements, have a certain understanding of foreign exchange and interest rate trends, and have the ability to take certain risks.
The so-called foreign exchange structured deposit refers to a business product that embeds some financial derivatives (mainly various options) on the basis of ordinary foreign exchange deposits, and enables depositors to obtain higher returns on the basis of taking certain risks by linking them with fluctuations such as interest rates and indexes. Or associated with the credit status of the entity.
It is a product transaction that combines fixed income products and options.
Through the combination of options and fixed-income products, the investment income of structured products has a linkage effect with the price fluctuation of related assets linked to the target, which can achieve the function of capital preservation or higher return on investment to a certain extent.