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Friday, 28 September 2018
Thursday, 27 September 2018
Wednesday, 26 September 2018
什么是凭单？Structure warrant
What is Structured Warrant?
Tuesday, 25 September 2018
Structure Warrant - Earn or Loss Money instrument ?
Many of you may have seen structure warrants being the Top Active, Top gainer and Top Loser list daily in Bursa Malaysia but always wonder how to make money from these warrants. Sometime you will be surprise with the gain of 200%-500% or 50 – 70% loss in a session /day for certain structure warrant.
As some of you might really curious how structure warrant works and how to make money from this product, I will be posting a series of articles in Chinese and English written by the RHB investment derivative team to help us better understand the structure warrant, and potentially assist to gain some money from this instrument.
We may have heard from many people who bought into this product and lost money. Furthermore, dealer or remisier may have asked you to stay away from this product. Before we put a full-stop on this structure product, let’s understand what exactly is a structure warrant.
Firstly, a Company warrant (usually denoted with W for e.g. , WA,WB ,WC is a different product compare to the structure warrant that which is usually denoted with C / H for e.g. C1, CA or H1, HA. Structure warrant is an investment product issued by investment bank instead of the company itself.
In Malaysia market, there are few types of structure warrant products available. For example, Call, Put and Callable bull/Bear certificate. Structure warrant value is typically related to the underlying value of a single share /exchange traded fund (ETF) Index (Can be local or foreign index), Commodities or a basket of share.
There are few Investment bank who are involved in the issuance of the structure warrants such as Ambank, CIMB, Kenanga Investment Bank Berhad, Maybank Investment Bank Berhad, Macquarie Capital Securities (Malaysia) Sdn. Bhd. & RHB Investment bank Berhad.
Comparison of different types of Structured Warrants
Call Warrants
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Put Warrants
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Callable Bull/Bear Certificates (CBBC)
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Issuer
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Eligible brokers or financial institutions
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Underlying Instrument
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1 underlying instrument (share, ETF or index)
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1 underlying instrument (share, ETF or index)
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1 underlying instrument (share, ETF or index)
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Dilution of underlying shares
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No new shares issued
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Expiry Period
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6 months to 5 years
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6 months to 5 years
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3 months to 5 years
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Expiration date
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Fixed
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Fixed
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Fixed – also possible for early termination when the price/level of the underlying instrument reaches the ‘Call Price’.
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Settlement price/level at expiry
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Shares/ETF:-
Closing price 1 market day before expiry; OR 5-days volume weighted average before expiry; OR 5-day average closing prices before expiry
Index:- Index closing or average index levels or settlement price of index futures expiring in same month
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At expiry:-
Shares/ETF:- Closing price 1 market day before expiry; OR 5-days volume weighted average before expiry; OR 5-day average closing prices before expiry Index:- Index closing or average index levels or settlement price of index futures expiring in same month Upon MCE:- Shares/ETF:- Lowest/highest price of the underlying in the next trading session (Main Trading Phase) Index:- Index level expiring in the same month | |
Settlement method
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Delivery of underlying shares or cash
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Cash only
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Sources : Bursa Malaysia, RHB Derivative
How to open account for Trading in Call warrant? Click Here
Want to know what is the different the other product available in the market? Click Here
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