Warrants

Features and benefits

Warrants are a highly leveraged derivatives trading solution that offer the potential to profit from both rises and falls in the value of assets such as shares or currencies without holding the underlying asset itself.

Whether you're looking for a risk management tool to protect the value of your existing shareholdings, increased leverage or exposure to a particular asset, or a trading product that offers the potential for greater returns (at greater risk) from a lower initial outlay, we can help you achieve your goals with a range of warrants trading solutions.

 

Important information

The Terms and Conditions of the Options and Warrants Trading application booklet have been updated. The changes will take effect from 1 July 2010. Please click here for more information.

Types of warrants

Instalment warrants

Instalment warrants let you borrow to invest in assets by paying part of the asset price upfront and borrowing the rest. This amount is revised yearly based on underlying share price movements.

On maturity (12 months to five years) you complete payment to receive the underlying assets or roll the investment over. You receive capital growth, dividend income and franking credits during the warrant’s life.

Turbo warrants

Turbo warrants offer the potential to profit from fluctuations of a share price within a range. They are highly leveraged with high returns potential and risk.

Turbo warrants have a ‘knock-out’ barrier level set at the exercise price. If the underlying equity touches this level during the warrants’ term, the warrant automatically terminates. If the level is not reached the warrant may be exercised at a price

Currency warrants

Currency warrants give you the opportunity to leverage your exposure to the $A/$US exchange rate and profit from your view of future currency fluctuations.

You can also use currency warrants to buy or sell a currency at a specific exchange rate on or before a specific date and protect your existing currency holdings against adverse movements in the exchange rate.

Brochures and forms

• Understanding Trading and Investment Warrants Brochure.