RISK OF TRADING EQUITY-LINKED NOTES (ELNs). ELNs combine notes/deposits with options and its return component is based on the performance of the underlying asset. The maximum return is usually limited to a predetermined amount of cash. You may stand to lose all his investment capital if the price of the underlying asset moves substantially against his view. Most ELNs are not low risk products. You will be taking on the credit risk of the issuer and his investment return depends primarily on the future price movement of the underlying asset(s). ELNs are structured products involving derivatives.Their maximum return is capped but the potential loss can be significant. It is important that you read all the relevant offe r documents to fully understand the features and risks of ELNs before deciding to invest.
