Warrants

Structured Investment Products

Structured Investment products basically combine warrants and other derivatives such as options in a package that is digestible to more conservative or less savvy investors.  Many of these products offer 100 per cent capital protection – yes, that’s right, you can’t lose a cent – although you will pay for this security in the form…

Time decay

Traders beware: warrants become less valuable as they approach their expiry date, often declining rapidly in the last third of their life. Time decay happens regardless of what’s happening to the underlying share price, which means that buying a warrant close to its expiry date is a risky practice indeed. And if the warrant happens…

Knock Out Warrants

Also known as Turbos, think of knock-out warrants as trading warrants – call and put warrants – with gusto. These warrants combine big leverage with big risk. And they’re not called knock-out warrants for no reason: these warrants come with an agreed barrier level, or share price, which if breached – in other words, should…

Instalment Warrants

An instalment warrant is a form of derivative, one which is designed to resemble a contributing share. Typically, the underlying shares are blue chip stocks. Instalment warrants are initially issued by a third party (an institution) and not by the company which issued the underlying shares to which the warrant relates. A purchaser of such…

Trading Warrants

The nice thing about trading warrants is that, unlike options and futures, they are bought and sold on the ASX like shares. For speculators looking to punt on short-term price moves – warrants might be just the vehicle you’ve been hunting for. Trading warrants consist of calls and puts. Options and futures traders will be…

warrant term

warrant termCompare Share says…