If the XY Index were to rise, the two investors would make a profit. In order for the bank not to suffer losses in the course of these two transactions, it is necessary to hedge. This is done through hedging transactions by the issuer, which enable it to also participate in the rise in the XY index. First of all, it would be conceivable for the bank to buy the index itself as a hedge. However, since a stock exchange or share index is only a calculated value, this is simply not possible. For example, as a hedge, the bank could simply buy all the shares included in the index (according to their index weighting) for a total equivalent of EUR 500,000 (EUR 50,000 + EUR 450,000). This is theoretically possible, but in practice it is very complex and expensive, because the more stocks an index contains, the more individual transactions have to be made.