That should be correct. However, your example is confusing leh:
1) You can't buy warrant which has already expired!!!
2) Why did you put USD10 and not RM10? As far as I know, the commission for trading on foreign stock market is much much MUCH higher! Like RM200++. Are you planning to trade on US stocks?
3) Don't forget about clearing fee and stamp fees too
4) To see whether the warrant has reach your target price, you need to check it yourself or ask your remisier to monitor the stock price lor...... I'm not too sure about whether your trading portal can inform you about that or not....

This post has been edited by kmarc: Jul 30 2009, 09:18 PM

thank you sifu...but yesterday when i re-calculate base on the tutorial posted in this forum i found out another info...
Example
Current CITIGRP common stock price : USD2.95 (let's use this as example)
Current CITIGRP-C2 price : USD0.095
Exercise price : USD3.25
Exercise ratio : 50 to 1

For me to convert to common share because i wanted to sell off the warrant:
Warrant price for 1 mother share = USD0.095 x 50 = USD4.75
Convert to mother share = USD4.75 + USD3.25 = USD8

if the above calculation is correct, meaning i will have to wait until the common share reaches USD8 in order for me to break even? pls advice sifu

Aiyoooo... don't call me sifu la... I'm a noob in stocks

Yes, if go according to your example, your calculation is correct. You would have to keep until the mother share is USD8 before you can break even (minus the commissions).

thanks for your advice.... sifu...hehehehe

thanks kmarc... learned something about warrant...

:idea

No problem. It's not finished yet though. Almost.

Not meant for you to go buy warrants aaa....

I got a question here about dividend, can you check my attachment the highlighted area there, is it the tax by govt? Why the tax so high until 25%? And only genting got tax but other company didn't charge for the tax. I thought the listed company already taxed by govt so their dividend to us will exempted from tax.


Attached thumbnail(s)

Those with tax is good thing, you can claim back some if you are not earning a lot of money.
Refer to other threads also, already discuss over for many times.

This post has been edited by htt: Aug 14 2009, 01:31 PM

What you mean good thing? Why some stock didn't deduct the tax?

It means that if your tax bracket is 7%, then you can claim back the remaider 18% (25% - 7% = 18%) when you do your income tax filing. That's what I understand...

This post has been edited by kmarc: Aug 14 2009, 03:57 PM

Kmarc, just wondering if you're going to add an example of how PUT warrants are calculated, now that KLCI got PUT warrants by OSK and AMMB.

Ok, will do that later. However, aurora97 found a new Kenanga website about warrants : http://www.nagawarrants.com/naga_wisdom1.html

Really excellent website with nice pictures and graphs. If I had seen that earlier, would not have done the warrant guide.

Anyway, since the warrant guide is almost complete, will complete it and also put the above link on the first line!!!!

It is not some stocks didn't deduct the tax. But it has been deducted until you don't know (first tier dividend).

Go throught the first tier and imputation dividend discussion previously to have the full picture of it.

Every profit made is taxed, you cannot run away, unless on some special circumstance that it is tax exempted.

Don't presume the tax voucher doesn't stated how much tax has been deducted, then it is no tax.

Hi Guys n Gals,

Can i noe what r ur thought on tgoffs-wb? comparing to tgoffs-wa?

WB price at 0.51, WA price at 1.0..

if the mother "will" be doing good as in near future(crude oil expected to touch 85 per barrel), so her son will follow as well(mayb a bit)

so instead of buying WA, is there anything bad move to buy WB?

sorry for my noob question..

can guide me how to see there kind of situation?

thank you very much for any replies.

CF

Hmmm if I'm not mistaken, WA lasts longer than WB. So naturally it is more attractive as it has a longer lifespan. Meaning it has more premium.

WA conversion price is also lower about 55 sens but WB conversion is higher about RM1 I think.

Short term wise there is no difference as the warrants will track the mother prices 1 for 1, since the ratio is also 1 for 1.

So WB warrants are lower entry prices, but shorter lifespan which is about 4 years.

Where as WA warrants have higher entry prices but last about 7 years.

Lifespan only pays a big part when the market tanks and WA being a longer lifespan warrant might let the holders 'live' longer before expiry aka long term investor.


But since you're planning for short term, it shouldn't matter. Just make sure the counter has sufficient volume every day for you to dispose if you need to. As TGOFF-Ws have very low volume and Qs.

This post has been edited by skiddtrader: Aug 28 2009, 10:21 PM

thx skiddtrader,

much clearer..thank you very much..

I read from the first page that if do multiple purchases per day for the same counter, the commission is calculated on the total purchase... Not each time pay the minimum charge?

E.g. Buy 1000 units each time, 5 times a day @RM0.80, 0.90, 1.00, 1.10, 1.20

Average Buy Price = ( 0.8 + 0.9 + 1.0 + 1.1 + 1.2 ) / 5 = RM1.00
Total units bought = 5x1000 = 5000 units

Brokerage: RM21
Contract Stamp: RM5
Clearing Fee: RM1.50

Total Commission: RM27.50

--------------------------------------------------------

If you do the same as above, but in 5 separate days, the commission will be:
(RM)
13.24
13.27
13.30
14.33
14.36

Total Comm: RM68.50

I think this depends on the brokerage and your account type.
Per my understanding, ClicksTrader with fixed RM8.88 per trade does not automatically lump all same counter transaction in a trading day together.

hi all,

may i know, how they set the conversion rate?
based on what?
why some warrant high and some low, even tho same mother?