Education Topics

Home

Why Trade Warrants?

• Introduction
• Gearing effect
• Limited loss
• Ability to go long/short
• No margin call
• Lower capital outlay
• Releasing share capital
• Ease of trade

What are warrants?

• Introduction
• Call vs Put
• How a call Warrant works?
• How a put Warrant works?
• How are Warrants named?

How are Warrants priced?

• Introduction
• Stock Price
• Exercise Price
• Expiry Date
• Volatility
• Dividends
• Interest Rates

Understanding the Warrant Structure

• Introduction
• Intrinsic & Time Value
• Time Decay
• Moneyness

Monitoring warrant price changes

• Introduction
• Last traded prices
• Bid prices
• Closing times

Useful Warrant terms

• Introduction
• Delta
• Warrants Per Share
• Warrant Sensitivity
• Breakeven Price
• Premium
• Gearing
• Effective Gearing
• Implied Volatility

How to select a Warrant?

• Introduction
• Selecting a warrant
• Market maker
• Risk Matrix
• Tips and tools

Single share calls and puts at expiry

• Introduction
• Last trading day
• Call expiry formula
• Call example
• Put expiry formula
• Put example

Index calls and puts at expiry

• Introduction
• Index expiry Formula
• Call example
• Put example

Risks

• Introduction
• Market Risk
• Gearing
• Limited Life
• Credit Risk
• Takeovers

Market Makers

• Introduction
• Liquidity vs Volume
• How We Hedge