Snowball product is a popular autocallable structured product that pays a high coupon if the underlying of linked index passes an upside barrier at which point it automatically matures, investors will gain their principal and investment income. Investors purchase snowball products, which are essentially similar to exotic options with barrier clauses. The essence of the product is similar to selling exotic put options and receiving option premiums.

This is mainly due to the income characteristics of its options. This type of option structure not only provides a certain degree of fall protection, but also expresses a "moderately bullish" view on the market. As long as the price of the underlying asset does not fall sharply, the longer the holding period, the more profitable it will be. This process is like rolling a snowball. As long as there are no big potholes on the road, the snowball will roll bigger and bigger, so it is called "snowball".

Snowball products have totally six significant elements: specific underlying of linked index, point of knock-out, point of knock-in, offering coupon rate, product period and initial points of the underlying of linked index. Products with different investing periods will contain different points of knock-in and knock-out, and the initial point of the specific products you bought depends on the closing price of linked index on that day.

When the Snowball product you purchased is knocked out, you don't need to worry. The probability of this happening is extremely small. You just need to wait patiently for the product to expire.

After you purchase the Snowball product, you only need to pay attention to the daily trend of the linked index and log in to your account every day to check whether the Snowball product you purchased has been knocked out in advance and you have obtained benefits. If it has been knocked out in advance, it is recommended that you purchase a new Snowball product again to obtain more benefits.

Theoretically, there is a risk of losing the principal when purchasing Snowball products, but this depends on the product's knock-in price, knock-out price and the performance of the linked index. According to historical data, the risk of losing the principal is very small.