Hi, can anyone explain this sentence to me? i dont really understand how the warrant works, i only know they come with expired date.

the Exercise Ratio of the Call Warrants is Six (6) Datasonic Call Warrants for One (1) Datasonic Share at an Exercise Price of RM3.72

This post has been edited by alpha91: Apr 4 2014, 12:34 PM

6 x Dsonic CW + RM 3.72 = 1 x Dsonic share

i see... thank you very much...

Hi everyone,

I have a doubt to clarify.
For brokerage fee, it is imposed only once daily or as long as I sell my shares I'm entitled to pay for the brokerage fees.

PS: I'm using HLE-Broking

You pay once when you buy and once when you sell, no payment in between.

Ahh..TQ senior

Hey, do you know what happen when it hits expired/maturity date?

according to what i know. you either trade them to buy mother share or sell them at the last day.
but you must remember that usually when a warrant or contract near to expire, the price will drop a lot. so need to be very very careful when trading warrant and contract.

and if you didnt sell or buy in mother with the exercise price. all your money gone.

This post has been edited by alpha91: Apr 4 2014, 11:59 PM

TQ my friend for your knowledge

you are welcome

Actually it means that 6 Datasonic Call Warrant will entitle you to buy 1 Datasonic share at the price of RM3.72. This is at expiry date if it is a European style call warrant.

This post has been edited by Cubalagi: Apr 5 2014, 10:42 PM

ok. let's say when the last day of the warrant is at RM 0.30, while Datasonic share is at Rm4. how it is going to work? i just pay 6 x Rm0.30 =Rm1.80 and get 1 unit of Datasonic mother share?

Call warrants nowadays are all cash settled. Meaning you dont get the shares but fhe difference between the exercise price and the mother share price at the expiry date. You will get nothing if exersice price is higher than mother share market price. Also the mother share market price is usually calculated based on 5 days market average prior to expiry.

So in your example, if you have 6 Datasonic CW with exercie price of 3.72 and mother share is trading at RM4.00 at the expiry, you will get a cheque for 28 sen. If you have bought the CW at 30 sen, meaning your cost is 6 x RM0.30 = RM1.80. You would have lost RM1.52 (1.80-0.28), not including transaction costs.

But this happens only if you hold the Call Warrant to expiry. You should never do that. The way to trade call warrant is very short term. Max you hold it just a few days, ideally intraday.

I used to trade call warrants sometimes, but not anymore. You need the time to closely monitor the warrant and mother share during the trading day and discipline to cut loss quickly. I dont have both.

This post has been edited by Cubalagi: Apr 6 2014, 09:39 AM

And remember if the mother price is less that rm3.72 at the maturity time, u will get nothing

This post has been edited by wenqing: Apr 6 2014, 10:05 AM

ok... thanks for the information. i know trade in warrant and contract is very risky.

I dont consider trading call warrants as investing at all. Its pure trading or can I say gambling.

More interesting is that There are also some Put warrants listed on Bursa. When the mother share falls, the put warrant price should go up. You can identify put warrant by stock code/stock name ending with "- HA".

For example, check out MAS-HA (3786HA). This is a put warrant for MAS issued by RHB Investment Bank. MAS HA price went up from 13 sen in mid-Feb to 20 sen by end March 14, when MAS the mother share fell.

Can someone help ?

Hi Seniors,

I came across a statement from a guy in the internet.
According to him, he claimed that a share price become overvalued after share split or/& bonus issue, is the statement true or false?

I thought the value of the share price is determined by P/E, PEG and intrinsic value?

Bonus is yes. While share split will made the stock price cheaper from current and it depend something go up and can go down.

share value didn't determine by P/E, PEG and intrinsic value.

Try google to understand what is PE and sometime require few other indicator for Fundamentalist Analysis.

1. The is no 'best' trading it depends on your liking the platform, service, analyst report and also convenience. Some want to choose good service, some want cheap, some want good reports and some want convenient to transfer money. Pick what is comfortable for you, later you don't like can always switch.

2. Only at the investment bank, not normal bank branch. Check the internet for address. CDS they will open on behalf of you. Call up for documents requirements.

3. If too long without stocks the CDS might be labelled as dormant, then you have to open again. Open when you are ready to buy at least 1 stock.

4. No such promotion as free units, this is NOT unit trust. The most they will give is cheaper brokerage fee promotion.