Warrants

Warrants are financial securities that give investors the option to buy (in the case of call warrants) or sell (in the case of put warrants) an underlying asset, at an agreed price (called the strike price), on or before an agreed date (called the expiry date).

Benefits

• Warrants allow investors to benefit from both Bull and Bear Markets.
• It is less expensive to invest in warrants than to invest directly in the underlying assets.
• The most an investor can loose from investing in a warrant is the initial price paid for the warrant.
• Warrants give investors exposure to a wide variety of asset classes (e.g. equities, indices, bonds etc.)
• Warrants are very liquid securities.

Who should use this product?

• Investors wanting gain geared exposure to the price movements of underlying assets.
• Investors who are willing to lose their entire initial investment.
• Investors wanting to protect existing portfolios against adverse price movements.

How to use this product?

• Investors believing that the price of an underlying asset will increase can benefit from call warrants.
• Investors believing that the price of an underlying asset will decrease can benefit from put warrants.
• Various trading strategies can be structured to suit the risk profile of a specific investor.