BENEFITS
- Cost-Effective Investment: Covered Warrants (CW) are often priced much lower than the underlying security.
- High Profitability: The ceiling margin can reach up to 100-200% per day, enabling rapid and potentially high profitability.
- Inclusive for Foreign Investors
- Zero deposit requirement, unlike derivative securities
- Trading as simple as the underlying stock
RISKS
- Significant Leverage: The substantial ceiling fluctuation range of up to 100-200% enables high leverage, though the maximum loss is limited to the amount spent on purchasing CW.
- In the event of losses or break-even at maturity, the cost of purchasing covered warrants is forfeited.
- Limited Lifespan: Covered warrants have a duration of 3 to 24 months, potentially making them less appealing for many medium and long-term investors compared to underlying securities.
- There is a risk of issuer insolvency
Bạn muốn góp ý về bài viết?
You can place an order in the “Trading stocks” section on TCInvest, similar to how you do it for underlying securities.
+
=
Verify Human or Spambot ?
When selling warrants (CW) before expiration, the trading method/ fees/ taxes are similar to those of underlying securities, although margin trading is not allowed.
+
=
Verify Human or Spambot ?
If investors hold warrants until expiry:
+
=
Verify Human or Spambot ?
Bạn muốn góp ý về bài viết?
Please note:
Net profit = (Selling CW Price – Buying Price) x Number of CW
Fees and taxes are calculated based on the transaction value = Matched CW Price x Number of CW.Bạn muốn góp ý về bài viết?
Receives the price difference on T+5 = (Settlement Price – Exercise Price) x (Number of CW/Conversion Ratio)
Pays a tax = 0.1% x Settlement Price x (Number of CW/Conversion Ratio)Bạn muốn góp ý về bài viết?
