Accumulators are designed for investors who wish to accumulate an asset, typically a stock, on a regular basis over a period of time. The attraction is that investors will buy N units of the asset or stock at the strike price which is cheaper than today’s spot price. The drawback is that 2N units or a higher number of units have to be purchased at the strike price should the price of the asset go below the strike. A knock-out barrier above today’s spot price is usually added to lower the leverage of the accumulator to a reasonable level.

By the end of this module, you will:
- Know the key features in an accumulator product.
- Understand how accumulators work.
- Know the risks to investors due to the asset price going to a low level as well as the knock-out barrier.