nope nope .....

you can straighly buy warrant without buying it mother share ...

oic...then which should i start 1st? not the company i mean here
is procedure...n i would like to buy thru online share trading via pbb... how? sifu help me

In RHBInvest platform, when you click on warrants details link...
you can see all the warrants information such as premium, expiring date, gearing, exercise price and etc..
Usually other online trading platform should provide such informations.
Otherwise, you can search in KLSE website itself. Look for warrants section.

any1 here help me?

not sure what is your question. what you mean by which to start first? maybe you should elaborate your question further.
You can use pbb for trading as long as it provide facilities for you to trade.
Once your account funded, you can start trading d.

oic...is it i straight away open a online share trading acc then funding into it then can start purchase warrant?

Yup, it is. But becareful when trading, choose correct counters /warrants to trade from.
For beginner, it is adviseable to buy stocks first then warrants.
Warrants is high risks instrument to trade for...

but bro, i know trading share is risk even stock....
but warrant much cheaper than ordinary share..like PBB warrant.... only 0.02
warrant have maturity date right? after the day, the warrant is it useless?

This post has been edited by subrok007: Feb 5 2009, 08:15 PM

That's expire date to be exact. After that can use as toilet paper, if you have the script with you.
If you are new, my advice is not to touch warrant first
Just my 2 cents.

ok thanks for the advise

Can anyone give me a detailed example on how warrant works? lets say, PBB stock price is 9.05, if i trade warrant, what is the price i can get for PBB and how long is the holding period? How can i determine the profit or loss? Is this same with option trading?

First of all, warrant has no close relationship with its mother share. PBBANK-CH is at 0.025 as of today.

Just treat the warrant counter as a normal and trade as usual with some restriction. To profit, you must sell higher than the price you bought before the expiry date. Just the breakeven calcuator to determine what is your best selling price determined by your buying price and number of shares you hold.

Warrant counter may be influenced by its mother share price. However, it may also react based on the speculation and news about the mothershare.

For example, RAMUNIA-WA is actively traded this week compared to its mother share, RAMNUNIA expect for today (especially in the 2nd half).

This post has been edited by David83: Feb 6 2009, 09:37 PM

The two are totally exclusive, mean you can buy either one of them without restriction.

You can also buy both of them if you have cash.

My little girl also gives me a very simple proposal, buy up all the numbers ( 10,000 numbers ) in the ekor, you sure strike one


Just buying Both 2 ekors could also completely out. Buy 10,000 counters could be bad if Dow collapses ( touch wood ).

The bottom line, not so easy lah.

Rule No. One, do not start with warrants if you are new, unless you want to be the graduate of the HARD KNOCK UNIVERSITY , by paying the right price.

This post has been edited by SKY 1809: Feb 7 2009, 04:51 PM

Just trade it like a normal stock. Profit or loss can be determined by your Selling Price - Buying Price, same like stock. For warrant price & expiry date, u can refer to bursa website or any newspaper.

But for beginner, its advisable not to touch warrant especially call-warrant (warrant issued by financial institution, Cx) because of the short expiry date. If u insist, try company issued warrant (Wx) which has longer expiry date. Remember for warrant, the expiry date is very important, it influence the warrant price too.

Bros,

Let us share a bit about 2 cents Remisiers/traders wan sik kachang bout warrants.

Warrants / Call Warrants is fall into deveriatives category. Means it bears highest risk in investment term. Same category with Futures/Options.

Why? Bcoz the concept of 'leveraging'.

Warrant is a paper/loan issued by the Own Mother/Listed Company Company itself.
It want to raise money to fund something ie a project ...
Why they use warrant instead of loan?
They issue warrant without commitment on paying interest rate compare of borrowing corporate loan/bridge loan.

And when it expires, they dont pay u money, u just convert it to mother share.
Swap to REAL SHARE.

In easy sentence, they sell u a paper which they borrow your money to use for 10years for company expansion without paying interest to you.

Warrant lifetime is long normally 5 years to 10 years expiry.

Call Warrant is issued by 3rd party - Commercial Bank or Investment Bank.
The tenure is much shorter, normally 6 months to 12 months. (expire in 1 year or less)

Its a medium for Banks to make quick money.
(How i explain next time, too long )

i.e Bank A call warrant A for YTLPower

The name will be YTLPower-CA

e.g. 100million shares
1.00 per 1000 shares
american style
exercise ratio 1: 1
exercise price 0.80
duration to expiry 10 years = 2019


U buy 100k shares at 1.0 = cost is RM100k
american style - can convert anytime to cash settlement before expiry

assume , mother share ytlp is 1.8 = so is in the money

why ?

u need 1k CW to get 1 mother share upon expiry.
ur RM1 + exercise price 0.8 = RM1.80 (mother share)

bcoz of the LEVERAGING concept and i believe YTLP can go higher, ill trade the CA instead of mother share.

make another e.g

if YTLP go from RM1.8 to RM2 = RM0.20 profit (11.1% again - we ignore the brokerage, give me a handicap point ok)

what is the theoritically increase price for the CA ?

1.00+ 11.1% ? =1.11 ? Wrong

is 1 + 0.2 = 1.2 (20% profit)

How about is the mother price go down from 1.8 to 0.6
it will be -0.2 , but call warrant max is 0 = what u invest is what u loss, thats why ur paper is toilet paper ...

call means go up , put means go down .

*the numbers above is exclusive of gearing / delta value / implied volatility .... which u need to factored in to goreng a CA or Warrant.

simplyfied it for readers friendly ...

happy trading

---

Added on February 12, 2009, 3:59 pmBros,

Forget to say , for newbie ... dun try Call Warrant .
Try stocks 1st ...

Bcoz of the leveraging, u must know what u r buying/duin ....
thats why for Call warrant, we dun invest instead we trade...

Thanks

This post has been edited by mikenji: Feb 12 2009, 10:38 PM

Lets differentiate from local company warrant (company warrant) than foreign warrant eg: Petrochina (issued by investment bank like CIMB/OSK) and others. I advise all traders and investors NOT to touch these foreign warrant because the brokers are always trying to push down the price despite the share raising. Not only market is against you but the broker is against you.

Example, Petrochina raise 5% in NYSE but warrant in KLSE moving up 0.5% or 1%. When it goes sideline, the broker PUSH the price down with 1 lot done transaction. When it goes down in NYSE, the broker PUSH DOWN AGAIN with 1 lot done transaction.

90% brokers call 10% your call.

for foreign CW , need to factored in the implied volatility (very significant for foreign CW) and the currency instability (exchange rate).

Got some questions about warrants here.

1) How much does it cost to convert the warrants? (Not the exercise price but the fee for the paperwork+service etc.)

2) How long does it take to convert the warrants? Lets say tmr 13/05/09 I submit everything complete, when will I see the mother share in my CDS? (I heard it was something like 2 weeks, not sure)

Im still new in this stuff, sifus please help and advice. Thanks