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The site should be : www.macquarie.com/sg
Sorry for the typo error. Please check-in again.
I think most Warrants Issuers priced the px of their warrants at a discount with a conversion ratio to attract Players at the time of issuance. And price changes could be due to the Market Makers who ensure that the warrants have a market. The Issuers may also have interest in the mother shares and thus have to defend their interests in the form hedging by buying or selling the underlying shares. Cheers!
err. I dun get what liverpool is saying.
the value of warrants derive their value from the mother share mah.
if nobody interested in mother share, pple also dun dare to buy the warrant, therefore their volumes will be kinda co-related.
hahaha... how can you separate mother from child? The very reason why the warrants move is because of the movements of the mother stock... :)
if u monitor the warrant carefully, it seems that the buy & sell price & volume changes instanteously with mother price. It shows that somebody is constantly monitoring and control the selling & buying. I wonder is there really genuine buyers or not, or maybe it is a trick to lure retail investors like us to go in and buy. anybody to shed some lights???
Already check, found nothing. even try DB & SGA site. Hope that warrant experts could enlighten us
Hi All, please logon to www.macquqrie.com/sg
and click on warrants which will bring you toWarrants Home Page; then click on education. Maybe that will give those interested in trading warrants some leads. Cheers!
If the really no buyers, the warrant issuer can withdraw the warrant mah. Where are the warrants gurus?
Warrant price normally start pricing @ 0.20. The issuser should be holding all the warrants initially, seller should be only the issuer, rite? If he starts selling @ 0.2, and nobody buys it. will he drop the price?? That's mean we should always queue to buy @ buy price or below and not sell price???
wondering how the trading mechanism starts?
Yup. My main question is about the exposure to market manipulation for the last 5 days or last day of the warrant's life.
I hope warrant expert could answer giantlow question. I am also interested to know
understand that the
value of the warrant upon maturity depends on the settlement price
which could be either the average of the closing prices of the
underlying for 5 days prior to and including the day immediately before
the expiry date, or the closing price of the underlying on the day
immediately before the expiry date.
The warrant issuer can dump the main share at a low price near the closing period for the 5 days or 1 day b4 the expiry date to avoid settling the warrants rite?
Similarly, the warrant holder can purposely prop up the main share at a high price for the 5 days or 1 day b4 the expiry date to increase the warrants value rite?
It seems very dangerous as the possibility for market manipulation is quite great rite?
I think CFD is 'neater' and more convenient than warrants... :)
Hi giantlow, there're 2 types of warrants : 1) Company Warrants issued by Company itself . It has the max expiry time frame of 5 yrs from date of issued. The Warrant will either has a fixed date of conversion or 5 days before expiry. The conversion px is fixed at the time of issued and only can be adjusted if there's any capital restructure, bonus issues etc.
Let say if CoyA issued a warrant @ 10c and the conversion px is 50c and the under-lying stock is now trading @ 80c and the warrant is trading @ 35c. Therefore, now you're 'in the money' if you convert your warrant and of course you'll make more if you sell it.
The person who buys from you is now 'out of money' (35c+60c = 85c which more than the stock px). Well if he think the under-lying stk could move further within the expiry of the warrant. Why not?
As for Structured Warrants (SW), I think it is very complicated and the risks are too many. I don't like European S.Warrants (preferred by the Issuers in S'pore) as compared to the American ones which you could excercise anytime within the expiry date. The European type has a fixed expiry date. In the case of SW, there're 2 types - Call-warrants and put-warrants and they're issued by Financial Institutes. I don't reccomend it,but if you insist, please make an attempt to really understand the risks b4 you commit your $$$$. Just briefly my understanding of Warrants. Hope that helps, Cheers!
Normally, I clear 1-2 mth before expiry.
Got a question for the expert warrant traders here.
I hope u all can help answer my question.
I understand that the value of the warrant upon maturity depends on the settlement price which could be either the average of the closing prices of the underlying for 5 days prior to and including the day immediately before the expiry date, or the closing price of the underlying on the day immediately before the expiry date.
The warrant issuer can dump the main share at a low price near the closing period for the 5 days or 1 day b4 the expiry date to avoid settling the warrants rite?
Similarly, the warrant holder can purposely prop up the main share at a high price for the 5 days or 1 day b4 the expiry date to increase the warrants value rite?
It seems very dangerous as the possibility for market manipulation is quite great rite?
I hope u all can help answer my question.
I understand that the value of the warrant upon maturity depends on the settlement price which could be either the average of the closing prices of the underlying for 5 days prior to and including the day immediately before the expiry date, or the closing price of the underlying on the day immediately before the expiry date.
The warrant issuer can dump the main share at a low price near the closing period for the 5 days or 1 day b4 the expiry date to avoid settling the warrants rite?
Similarly, the warrant holder can purposely prop up the main share at a high price for the 5 days or 1 day b4 the expiry date to increase the warrants value rite?
It seems very dangerous as the possibility for market manipulation is quite great rite?