Warrant Handbook

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1
What is Warrant?

Warrant is a derivative product that gives the holder a right, but not obligation, to buy or sell certain amount (depends on the exercise ratio) of the underlying asset at a predetermined exercise price on or before the predetermined expiry date. The underlying asset could be stocks, indices, commodities etcetera.

Warrants listed on Bursa Malaysia market are tradable securities, just like buying and selling shares.

There are two types of warrants available in the market:

  1. Call Warrants
    • Give the holder a right, but not obligation, to buy the underlying asset at a predetermined exercise price on or before the predetermined expiry date
    • Purchased by trader who has a bullish view on the underlying asset
  2. ​Put Warrants
    • ​​Give the holder a right, but not obligation, to sell the underlying asset at a predetermined exercise price on or before the predetermined expiry date.
    • Purchased by trader who has a bearish view on the underlying asset
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2
Structured Warrants vs. Company Warrants