In my previous post, I mentioned one of the investment things I want to learn about this year is warrant. My intention of buying warrant is to use it as a hedging tool for my existing holdings. I have read about options and kind of know how they work. SGX has no options for trading, sg’s version of options are structured warrants, which I won’t go into details introducing it you can go to SGX’s website to find out more.

One notable draw back of structured warrant is that it cannot be exercised to purchase or sell the underlying shares. It can only be exercised upon expiry (European style) if it is in-the-money (ITM). If it is out-of-money (OTM), that means you lose all your capital invested in the warrant aka the insurance premium paid for hedging.

For illustration, I used Macquarie’s search tool to find the warrants and below is what I get…