One of the key determinants of a warrant’s price is the implied volatility of the underlying asset. All else being equal, the price (specifically the time value) of a warrant will increase as the volatility of the underlying asset rises.
With the exception of the US and the UK there are securitised derivative markets in all the major capital markets around the world.
1. Download the excellent free guides available from The McHattie Group and the issuers. Go to the warrants document library by clicking here. Alternatively you can order this information to be delivered to your door in the form of our Warrants Box. Click here for details.
Covered warrants have offered investors the ability to trade a leveraged investment, with unlimited profit potential and with a limited down side known and capped at outset and no stamp duty. What’s more, they could be easily traded through the trader’s existing stockbroker.