Shares & Derivatives
Making sense of Warrants
By Rainbow Coin  •  January 2, 2018
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......
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By Rainbow Coin
I began exploring the financial world in year 2010, hoping to get out of the rat race and be financially independent. 2010 was the aftermath period of the Lehman crisis when a pretty shaken up market was struggling to recover. On hindsight, that was the perfect time to catch multi-bagger stocks should I be a veteran or at least had some basic knowledge of picking up 'gems'. My learning curve was steep then, as I have absolutely no friends or relative who could shed some light on what's investing about.
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