Knowledge, Knowledge of warrants, Stock Trading, Warrants

Covered Warrants (CW) example

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You can place an order in the “Trading stocks” section on TCInvest, similar to how you do it for underlying securities.

The duration of warrants is a minimum of 3 months and a maximum of 2 years, calculated from the offering date to the expiration date.

When selling warrants (CW) before expiration, the trading method/ fees/ taxes are similar to those of underlying securities, although margin trading is not allowed.
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.

If investors hold warrants until expiry:

  • Loss: Investors receive nothing.
  • Break-even: Investors receive nothing.
  • Profit: The investor:
    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)

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