Holographic threads incorporate diffractive surface elements with variable colors and patterns. They are designed to particular customer needs. This includes effects which simulate a movement, a change in shape, or three-dimensional elements. Typically the holograms are combined with demetallized areas boosting their appearance and security.

To further enhance the security of the thread to protect against counterfeiting, holographic threads can be equipped with covert security features. These include machine-readable properties such as magnetic and electrical conductivity, or elements visible under UV, polarized or laser light.