stock market invest trade forex money

By Ms Connie Ong, CFA

Call warrants are investment instruments that provide excellent gearing capabilities in bullish markets. As it confers the right but without the obligation to acquire a fixed quantity of assets such as shares for a specified price within a limited period of time, your downside is therefore limited to the initial investment whilst you still continue to enjoy possibility of upside potential from the investment. Additionally, the need to only pay a small amount for the `right to ownership' rather than ownership itself also permits the investor to leverage and increase market exposure for the same amount of capital invested.

call warrants = call options

Just mark the words...." Call warrants are investment instruments that provide excellent gearing capabilities in bullish markets "

haha...why never mention about bear market ? :p

Time is normally short for warrant, some even pronounced Warrants as death certificate from the moment they are purchased.

Gearing up only when mother share is high. Rugi lol if mother share is down.

:-P

You know why ppl call buying securities in share market as "investment" and not "gambling"? Reason being, investment has the holding power while gambling doesn't. For instance. You bought "mother" shares and lose 10% today, you may choose to realise the loss immediately or hold on until mkt price rebound. I call this as investment because you have the "choice".

Second example, you bought Call warrant and lose 10% today, maturity date about a month later, market is stagnant, you have no choice but to dispose it otherwise losses may getting greater. I call this as gambling simply because you have very little "choice".

I personally being burned by call warrant and loss appx RM17k few months back. Of coz same story, I made some initially but loss 5x subsequently. The feeling of buying call warrant just like trying your luck in Genting. Too short shelf life made call warrant lack of holding power. In my point of view, you should avoid call warrant unless your luck is god damn good!!

hi,
Erm... i to hold when there is unexpected paper loss and to wait for a rebound is not the exact definition of investment... and sometimes when one waits for a rebound, it may not come... hehe....

Regards...

Hi..

Buying warrants is gambling resulting in losses? I think its a matter of choice and timing.

If you had bought tranmil when it was RM13, and you held to it when it started to drop with the hope that it would recover, you would have lost 70% by now although it is a "mother share".

But at least you name still registered as a shareholder of the company ...

Anyway, that was just my 2 cents opinion. I always myself to stay away from out of money ... reward just doesn't justify the risk associate with the call warrant.