Regulation · Turbo and knock-out certificates
BaFin’s knock-out knowledge test: what it asks and how to pass
Since 16 June 2026, retail investors in Germany have to pass a check of their “basic turbo knowledge” at their bank before buying a turbo or knock-out certificate. The rules prescribe six multiple-choice questions, and all six must be right. A pass is valid for at most six months. Further down you can practise with our own questions in the exam format.
By Daniel Berg ·
Needed to pass
6 of 6
- In force since
- 16 June 2026
- Prescribed questions
- 6, multiple choice
- Validity
- at most 6 months
- Retakes
- unlimited*
Source: BaFin general administrative act of 15 Oct 2025, Annex II. *Banks may set stricter rules, such as limiting attempts, adding questions or shortening the validity.
What is the knock-out knowledge test?
Its official name is the check of basic turbo knowledge (Abfrage des Turbo-Basiswissens). It is part of a product intervention measure BaFin issued on 15 October 2025 as a general administrative act, based on Art. 42 MiFIR and § 15 of the German Securities Trading Act (WpHG). After an eight-month transition it has applied since 16 June 2026 to every investment firm selling turbo certificates to retail investors domiciled in Germany.
The measure has three parts. Investors notice the test first, because it stands in front of the first purchase. The other two you either see in the app or no longer see at all.
Knowledge check
Before you buy, your bank asks six questions on the knock-out, holding period, costs, loss rate, price quotes and issuer risk. You pass only with six correct answers.
Standard risk warning
Ads, product pages and the order screen must show a warning worded by BaFin, clearly visible, right before every purchase.
No purchase incentives
Reduced or waived order fees, new-customer bonuses, rewards and other benefits tied specifically to buying turbos are banned.
Who has to take the test, and for which products?
The rule covers retail investors domiciled in Germany, meaning retail clients under the WpHG. The investment firm you buy through has to run the check. According to BaFin that includes banks and brokers from other EEA states selling cross-border to German retail clients. Professional clients are not covered.
What counts is how the product is built, not what it is called. BaFin defines turbo certificates as transferable securities in the form of bearer bonds that track an underlying with leverage and expire immediately when a set knock-out barrier is reached. They are sold under names including:
- turbo certificates, turbo warrants, turbo knock-outs
- knock-out warrants and knock-out certificates
- mini futures
- variants such as open-end turbos, smart turbos, BEST turbos or X-turbos
The test does not replace the MiFID II appropriateness test, in which your bank asks about your knowledge and experience in general. It comes on top. Banks may combine both into a single flow.
How the check works: the rules in Annex II
Annex II of the act sets out the format in detail. BaFin prescribes six questions with three answer options each. Banks may reword them and change their order, but not their substance.
| Item | Requirement | What banks may do differently |
|---|---|---|
| Questions | At least the 6 prescribed questions, multiple choice | Add more questions |
| Passing | All 6 prescribed questions correct | – |
| Retakes | Unlimited, no waiting period | Limit the number of attempts |
| Result | Straight after the check; correct answers shown for any mistakes | – |
| Validity | At most 6 months, then again before the next purchase | Shorter, down to every order |
BaFin says the six required questions cover these subjects: what happens when the knock-out barrier is reached, what holding period turbos are designed for, which costs arise, what share of investors lose money, whether market makers must always quote prices, and what happens if the issuer goes bust. Our trainer’s exam mode tests exactly those six subjects, with questions we wrote ourselves.
Why the test exists: BaFin’s numbers
The basis is a BaFin market study (in German). It analysed reporting data on about 113 million transactions in turbo certificates made by roughly 543,000 German retail investors between 1 January 2019 and 31 December 2023.
74.2% lost money
That share of retail investors had more realised losses than gains over the five years.
€6,358
The average loss per retail investor over the period.
Over €3.4 billion
The combined loss of all German retail investors in turbos over that time.
The link with trading frequency is striking. Those who traded more were not more often in profit, but less often:
| Transactions over the period | Share with a loss |
|---|---|
| 1 to 10 | about 70% |
| 10 to 100 | 76% |
| 100 to 500 | about 83% |
| 500 to 1,000 | 88% |
| over 1,000 | 91% |
BaFin’s main criticisms are the products’ complexity and the way they are marketed. It concluded that the general appropriateness test is not enough to make sure investors really grasp the specific risks, hence a dedicated check. Because correct answers must be shown after mistakes, the check is meant to teach as well as filter.
How knock-out certificates work: barrier, leverage, costs, gaps
Once you understand the mechanics, you do not need to memorise answers. A long turbo works like this: the issuer funds most of the underlying up to the financing level (often also called the strike). You pay only the difference above it, scaled by the ratio. That is where the leverage comes from. If the underlying falls to the knock-out barrier, the certificate expires immediately.
- Price of a long turbo ≈ (underlying price − financing level) × ratio, plus any premium.
- Leverage ≈ underlying price × ratio ÷ certificate price. The closer the barrier to the price, the higher the leverage and the smaller the move that wipes you out.
- Financing costs are usually charged by adjusting the financing level every day. If the underlying stands still, a long turbo therefore slowly loses value.
- Short turbos are the mirror image: financing level and barrier sit above the price, and the knock-out threatens when prices rise.
Rounded, made-up numbers, no spread. Barrier equal to the financing level.
- Share
- €100
- Financing level
- €90
- Ratio
- 0.1
- Price / leverage
- €1.00 / 10
1Buy
You buy 1,000 certificates at (100 − 90) × 0.1 = €1.00 each, so €1,000 at stake. The position behaves like 100 shares worth €10,000.
2Share +5%
At €105 the certificate is worth (105 − 90) × 0.1 = €1.50. You are up 50%, ten times the share’s move.
3Share −5%
At €95 it is worth only €0.50, so −50%. Leverage has now risen to 19 because the distance to the barrier has shrunk.
4Share flat 30 days
With an assumed financing rate of 5% a year, the financing level rises to about €90.37. With the share unchanged, the certificate is worth only about €0.96, roughly −4%.
5Share touches €90
Knock-out. The certificate expires immediately and is booked out at a minimal amount: a total loss of about €1,000, even if the share is back at €100 the next day.
Leverage works both ways and keeps growing as the barrier gets closer. With a knock-out, a timing mistake costs the whole stake, not just part of it.
Gaps are the underrated risk. If a share closes just above your barrier and opens below it the next morning after news, the knock-out happens at the open. Between the close and the open there was no price at which a stop order could have been filled. On products whose barrier sits above the financing level, such as many mini futures, a residual value is calculated after the knock-out. If the price also jumps below the financing level, that residual value can be tiny or disappear altogether.
On top of that come three risks BaFin spells out: market makers are generally not obliged to quote prices at all times and may suspend quotes when volatility is high. Issuers regularly reserve the right to terminate turbos. And as a bearer bond, every certificate carries the issuer’s default risk, which deposit insurance does not cover.
Practise now: the knowledge test trainer
Practise with our own questions on every subject of the BaFin check. Practice mode explains each answer straight away. Exam mode asks six questions, like the real check, and only counts as passed when all six are right.
This is a BeInOptions practice trainer, not your bank’s check. Each bank words the official questions itself, based on BaFin’s requirements.
Practice mode
All questions or one subject, with an explanation after every answer.
Exam mode
6 questions, one per required subject. Pass only with 6 out of 6.
- Knock-out
- Holding period
- Costs
- Loss rate
- Price quotes
- Issuer risk
Your progress
No results yet. Progress is stored only in this browser.
Reminder to renew
A passed check is valid for at most six months. Enter the day you passed it at your bank and download a calendar event.
The file is created in your browser; nothing is sent anywhere. Your bank may set a shorter validity.
Frequently asked questions
What is the knock-out knowledge test?
The “check of basic turbo knowledge” that banks and brokers have had to run since 16 June 2026 before a retail investor domiciled in Germany buys a turbo or knock-out certificate. It is based on BaFin’s general administrative act of 15 October 2025.
How many questions are there, and when do you pass?
BaFin prescribes at least six multiple-choice questions. You pass only if all six are answered correctly. Descriptions such as “6 out of 8” do not match the text of the act. Banks may add questions of their own.
How often do I have to retake it?
A pass is valid for at most six months. After that you have to pass again before your next turbo purchase. Your bank may shorten the period or even ask the questions before every order.
What happens if I fail?
You get the result straight away, with the correct answers for any mistakes. Under BaFin’s rules you may retake the check as often as you like, with no waiting period, but your bank may limit the number of attempts. Until you pass, you cannot buy turbos through it.
Does the knowledge test apply to CFDs?
No. The act only covers turbo certificates, i.e. bearer bonds with a knock-out barrier. CFDs have been subject to a separate BaFin general administrative act since 2019, with leverage limits, close-out at 50 percent of margin, negative balance protection and a ban on purchase incentives.
Does the test replace the appropriateness test?
No. It comes on top of the MiFID II appropriateness test. Banks may combine the two into one flow as long as every requirement in Annex II is met.
Are there still new-customer bonuses or free trades for turbos?
Not in connection with buying turbos. Since 16 June 2026, monetary and non-monetary benefits such as reduced or waived order fees, new-customer bonuses or rewards for this are banned. Tutorials, analysis tools and exchange prices are expressly not counted as such benefits.
Is the trainer on this page the official test?
No. The trainer is a BeInOptions practice tool with questions we wrote ourselves. It covers the subjects of the required check and mirrors its format: six questions, passed only with six correct answers. The binding test is the one at your bank.
Where to go next
All numerical examples on this page are rounded, illustrative assumptions, not market data. Regulatory information comes from the linked BaFin publications (as of October 2026); only the text of the general administrative act is binding. This content is educational and not investment or legal advice. Turbo and knock-out certificates are high-risk; you can lose the entire amount invested.