DERIVATIVES


Accredited Derivatives Advisers are able to provide advice and dealing in relation to Warrants.

A warrant is a form of derivative, that is, they derive their value from something else, including shares, indices, or commodities. Warrants take two main forms, investment style and trading style:

  • Investment style warrants tend to be longer dated and less frequently traded. They have a lower risk/return profile and often have a higher face value than trading-style warrants. Examples include instalments, endowments, structured investment products.
  • Trading style warrants are relatively short-dated and are generally traded frequently. They have a higher risk/return profile than investment-style warrants. Examples include trading and knock-out warrants.

For more information, please refer to the following publications available on ASX's website (see links at right):

  • Warrants - A simple guide
  • Understanding Trading and Investment Warrants
It is important to note that warrants are not suitable for all investors, and need to be considered in relation to your individual investment objectives and personal circumstances.