Derivative Warrant (DW)

Invest less while increasing profit opportunities in both rising and falling markets

Warrants granting the right to buy or sell an underlying asset

Ideal for short-term speculation or managing portfolio risk

What is a DW?

Instruments issued by a securities company that give the holder the right to buy (Call) or sell (Put) an underlying asset, such as a stock or index, at a set price and time.

Low entry investment

Requires less capital than buying the underlying stock directly

Has a limited lifespan

Must be traded before the Expiry Date

Profit in both directions

Choose either Call (bullish) or Put (bearish)

High liquidity

DW issuers act as Market Makers to maintain trading liquidity

Why DW Is Attractive

Low capital required (High Leverage)

Invest only a fraction of the underlying stock's value, with the potential for higher returns when prices move as expected

Know your maximum loss (Limited Loss)

Maximum loss is limited to your initial investment, with no additional collateral required (No Margin Call)

Flexible and easy to trade

Trade through your regular stock account, with a Market Maker supporting liquidity for smooth trading

Use DW to “generate profit” or “hedge risk”

Call DW (rising market)

Use when you expect prices to “rise” to speculate for profit

Put DW (falling market)

Use when you expect prices to “fall”, or to reduce the impact of volatility without selling the stocks you hold

Who is DW for?

  • Those seeking short-term profits
  • Those looking to diversify their portfolio risk
  • Those who understand market mechanics and can accept the risk

View DW list