Sharesmagazine
 Home   Log In   Register   Our Services   My Account   Contact   Help 
 Stockwatch   Level 2   Portfolio   Charts   Share Price   Awards   Market Scan   Videos   Broker Notes   Director Deals   Traders' Room 
 Funds   Trades   Terminal   Alerts   Heatmaps   News   Indices   Forward Diary   Forex Prices   Shares Magazine   Investors' Room 
 CFDs   Shares   SIPPs   ISAs   Forex   ETFs   Comparison Tables   Spread Betting 
You are NOT currently logged in
 
Register now or login to post to this thread.
  • Page:
  • 1

Warrent - Help     

ckmtang - 10 Oct 2003 20:08

I am trying to learn how to trade warrant? can anyone explain to me?

zarif - 10 Oct 2003 20:47 - 2 of 3

Have a look at the Sgwarrants site -lots of info and edu there.
rgds
zarif

What do u dio at present?
Have a peek at my thread on the Dow Index

zzaxx99 - 10 Oct 2003 20:59 - 3 of 3

Are you talking Covered Warrants or equity warrants?

Covered warrants are a (generally) leveraged derivative of some underlying, which might be a share, or an index, a currency, oil price, commodity....

They have two or 3 major uses:To reduce risk - gain exposure to the same number of underlying shares but with less money - as the warrants are cheaper (often much cheaper) than the underlyingTo increase gains - invest the same amount of money as you would have spent in the underlying, but take advantage of larger %age movements (or be wiped out quicker!)To take advantage of declining prices - use Put warrants which increase in value as the underlying declinesMajor caveat: this is a gross simplification - the rate by which warrants move relative to the underlying is not linear - it is a function of a number of values (generally known as the "greeks"), which specify how much they will move, how much the amount they move will change, how much the price of the warrant will decline as it goes towards the expiry date etc.

Have a look at UK Warrants for some good material - don't think about trading for real until you understand what their "WarMap" is telling you.
  • Page:
  • 1
Register now or login to post to this thread.