hi guys... been a while did not do trading after i applied for another cds account (my 1st account - nominee)
today i log in to my m2u and choose the nominee account placed some buy que for a xxx-ca and i just realised that there is error message and the trade fails.

Account Code [SE00xxxx] is not allowed to trade Structured

what does that mean by this ya ?
i m not able to use my nominee account after i have a cds account ?
thanks

not sure what is option stock.. so cant really recall if the deal did or did not informed me on such thing
anyway, upon applying my cds, it took me some time and call out to them and finally they managed to activate and linked my cds to my m2u.. so each time when im logged in, i will choose either one of them..

cds - for global trading / ipo purpose
nominee - normal share buy / sell call.

i remember i bought some hmmm.. oh ya.. those were warrants...
So call warrant is a different thing right ?

Call Warrants on the other hand are not issued by the listed company but by third parties such as banks and stockbrokers. On Maturity, they are not converted to shares but the investor is paid a profit if the mother price is more than the exercise price but the investors has all his money forfeited if the exercise price is less .

The stock that i placed this morning is actually a call warrant

Read from here.. i guess i got the point
thanks everyone

Call warrant

Call Warrants on the other hand are not issued by the listed company but by third parties such as banks and stockbrokers. On Maturity, they are not converted to shares but the investor is paid a profit if the mother price is more than the exercise price but the investors has all his money forfeited if the exercise price is less .

If you buy during it's lowest price....

Cash Settlement Amount = Number of AIRASIA-CE x (Closing Price – Exercise Price) x (1/Exercise Ratio)
= Number of AIRASIA-CE x (RM1.3673 – RM1.05) x (1/2)
= Number of AIRASIA-CE x (RM0.3173) x (0.5)
= Number of AIRASIA-CE x RM0.1587

If bought 10000lots to exercise....

= Number of AIRASIA-CE = 0.15-0.03
= Number of AIRASIA-CE x 0.12
= 1000000 x 0.12
= 120000...........

If dont exercise......already included fees
Buy at 0.03 sell 0.145=114,597.50

total invest only rm30k

This post has been edited by FirezZ: Sep 25 2014, 04:06 PM