A collar which provides investors with a tool to secure a minimum (floor) return combined with reduced participation above a specific maximum (cap) level. With this structure, the holder of a collar accepts to a give up some upside profit potential to pay for downside protection. Unlike a standard collar, which requires the investor to give up the potential of favorable prices on one side of the transaction, with a participating collar it is possible to participate in some of the price decline below the lower bound of the structure.