An equity linked product (equity linked note, ELN) that combines an equity-linked debt instrument with an option that allows a range bet on the underlying price. The payoff of an equity-linked note is typically determined by the performance of an individual security, a basket of securities or an index. A range equity-linked note can be perceived as a traditional deposit combined with the premium received from issuing/ selling both a call option and a put option on the underlying securities. The return on investment depends on the underlying price trading within the predetermined range. However, the holder will not gain more than the amount specified for such a possibility.

If the underlying price ends up outside the range, the holder will get nothing, and depending on the performance of underlying securities, the entire capital amount (principal) might be lost.