I've been staying away from trading warrants for some time because I couldnt understand how it all works even after reading various articles. But curiosity finally got the better of me and I decided to jump right in to a forced-learning approach.

So I've bought 1,500 Samaiden GR-WA26 warrants on Rakuten with price RM0.225 and I invested RM330

The exercise/strike price is RM0.72
The stock price as of 7/4/2023 is RM0.97

Now, lets say, next week the stock goes up by 10 sen to RM1.07. My first questions are:

1. The exercise price still remains same right?
2. If I want to exercise these warrants, I sell them in Rakuten?

3a. If yes, what is the price I should be selling at? Will it be RM0.225 + RM0.10? Because when I click on "Sell" and the pop up appears, I dont see any involvement of the strike price, which gets me confused.

3b. If no, how do I exercise the warrants?

4. What is the RM0.225 price called? Is that the intrinsic/underlying price?

Exercise warrants means convert to ordinary share.

Warrants has no voting rights, ordinary shares does.

There’s a ratio of warrants to ordinary shares, people buy cheap warrants because you have the option to convert it to ordinary shares or trading it as usual. If after convert, the price after the ratio is higher, then you can sell it off as ordinary shares instead and gain profit, or keep it to earn dividends.

None of my questions were answered

You sell the warrants on the stock market at the price other investors are willing to buy from you. This is exactly like selling shares.The warrants then just move from your account to the other investor account.

This is also what happen when you buy the warrant. That 0.225 is your buying price. The intrinsic value of the warrant is 0.97 - 0.75 = 0.22. The half a sen extra is the premium you pay, someone else willing to sell you the warrant for.

You exercise the warrant with the company. Here you pay the strike price to the company and the company will credit you new shares.There is some form to fill and you have to prepare a cheque. The broker will usually help you with this but you have to call them.

This post has been edited by Cubalagi: Apr 8 2023, 09:35 AM

1. yes
2. yes. when exercised they be converted to shares
3a. share price... because not exercised yet
3b. check rakuten... usually broker do for you... or diy
4. your buy price. not exactly.

good luck

Many thanks!

Hello everyone. I found something interesting

In April, I bought Samaiden warrants. Only the warrants.

Today I checked my portfolio and somehow I have ordinary shares as well, even though I did not buy them.

How did this happen?


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warrants are not converted automatically. so either you bought some shares that you didn't realise or you were holding some of the shares and they gave you bonus/split etc

Huh. You're right. My trade history says I bought the shares on the same day.

I must have completely forgotten then.