{"id":38806,"date":"2022-10-18T16:26:34","date_gmt":"2022-10-18T09:26:34","guid":{"rendered":"https:\/\/help.tcbs.com.vn\/benefits-and-risks-of-trading-covered-warrants\/"},"modified":"2023-11-08T13:58:38","modified_gmt":"2023-11-08T06:58:38","slug":"benefits-and-risks-of-trading-covered-warrants","status":"publish","type":"post","link":"https:\/\/help.tcbs.com.vn\/en\/benefits-and-risks-of-trading-covered-warrants\/","title":{"rendered":"Benefits and risks of trading Covered Warrants (CW)"},"content":{"rendered":"

[vc_row][vc_column width=”2\/3″][vc_column_text]BENEFITS<\/b><\/span><\/p>\n

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  1. Cost-Effective Investment: Covered Warrants (CW) are often priced much lower than the underlying security.<\/li>\n
  2. High Profitability: The ceiling margin can reach up to 100-200% per day, enabling rapid and potentially high profitability.<\/li>\n
  3. Inclusive for Foreign Investors<\/li>\n
  4. Zero deposit requirement, unlike derivative securities<\/li>\n
  5. Trading as simple as the underlying stock<\/li>\n<\/ol>\n

    RISKS<\/b><\/span><\/p>\n

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    1. 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.<\/li>\n
    2. In the event of losses or break-even at maturity, the cost of purchasing covered warrants is forfeited.<\/li>\n
    3. 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.<\/li>\n
    4. There is a risk of issuer insolvency<\/li>\n<\/ol>\n

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