Options & derivatives
Warrant
A warrant is a product, issued by a bank, giving the right to buy or sell an asset at a set price, much like an option.
A warrant is a product, issued by a bank, giving the right to buy or sell an asset at a set price, much like an option.
Close to an option, a warrant is issued by a financial institution and often aimed at retail investors. It carries leverage and an expiry date: beyond it, it can lose all value. A product to handle with caution.
You buy a bullish warrant on a stock; if it stays below the strike at expiry, it becomes worthless.
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