What are warrants?
A Warrant is a security that is issued by a bank or other institution and traded on the ASX. Warrants are linked to an underlying asset, such as shares, and provide investors with an alternative way to gain exposure to this underlying asset.
There are a number of different types of Warrants which will suit different trading strategies. The two main styles of warrants are Investment Warrants and Trading Warrants.
Why invest in warrants?
Investors choose to invest in warrants for a number of reasons, including:
- Building a leveraged exposure to an underlying share
- Protecting (hedging) the value of an existing share portfolio
Warrants trading at CMC Markets Stockbroking
CMC Markets Stockbroking’s dealers are experienced in warrants trading, and our web site includes easy access to a list of all warrants linked to an underlying share, along with basic details about the structure of the warrant and the issuer etc.
Want to learn more about Warrants?
To learn more about Warrants, we suggest you read the ASX’s Understanding Trading and Investment Warrants guide.
