Cherroy explained well broadly on warrants. Traditional warrants normally have conversion ratio of 1 to 1. For CW, 1 to 1 conversion ratio represents highest gearing.

There are CW with zero gearing too because their exercise price is NIL. This kind of warrant normally has long expiry date. It has to relate to foreign mother share, buying CW therefore is no different from buying the mother shares except that CW expires one day, but not the mother shares. So, this kind of CW is trade at very low premium normally.

In Msia, we do not get to buy Put Warrant, Exotic Warrant (e.g with several expiry milestones; and final cash settlement amount is calculated based on all milestones. Each milestone locks in a value and forms part of the final settlement amount)

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Added on August 6, 2009, 1:12 amThere are many ways to trade, invest, speculate, etc. Shares are different things to different people. In the long run, the soundness of your judgement, containment of emotion, application of absolute objectivity, and most of all ,understanding of the biz/ shares you buy and of the economic cycle and sectorial performance define your success.

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Added on August 6, 2009, 1:16 amI notice most IT people buy shares without sufficient appreciation of what success in shares entails. Taking a course in economics, finance, accounting, etc certainly helps your odds against failure.

This post has been edited by CKC (Sense-Maker): Aug 6 2009, 01:16 AM

Holding shares or cash have their respective advantages. Hold shares when the economy is on the mend and hold cash when every talks about shares. In reality, you can do forex, property, etc, to make or lose money.

An important trait I believe is to be ready when opportunity comes. That means you must have the ability to make quick decision involving big sums of money when a decision is warranted whether to buy or sell.

In short, as in many things in life, staying ahead of the times will make you a winner in the long run.