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 I need an ELI-5 tutorial on warrant trading, using Rakuten

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dwRK
post Apr 8 2023, 10:06 AM

the consummate chartist
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QUOTE(RigerZ @ Apr 7 2023, 11:42 PM)
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?
user posted image
*
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

 

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