In detail

Derivatives are a particular type of trading product which allows you to trade on your view of future price fluctuations without holding actual shares or assets.

Why use it?

• Derivatives offer the potential to earn higher returns (at greater risk) or protect the value of your existing shareholdings depending on how they are used.
• Derivatives offer increased leverage or exposure to a share or asset, which means they provide the opportunity for higher returns (at greater risk) from a lower initial outlay than you would otherwise achieve by holding the underlying share or asset.
• Because derivatives enable you to benefit from both rises and falls in market prices, they are often used by investors as a risk management tool to protect the value of their shareholdings from adverse market movements.

Trading Warrants

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.

1. Currency Warrants	Currency warrants give you the opportunity to leverage your exposure to an 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. Currency warrants can be traded via your accredited Investment adviser.
2. 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 price. Turbo warrants can be traded your accredited Investment adviser.
3. 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 (12mths-5 yrs) 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. Instalment warrants can be traded via your accredited Investment adviser.

Things to consider

1. Your financial goals
   What are your short, medium and long term financial goals? Are you looking for opportunities for greater leverage and higher returns? Are you looking to hedge or protect your current share portfolio against adverse market movements?
2. Your investor profile
   Are you an experienced stockmarket trader with an understanding of both the risks and opportunities associated with derivatives trading? Are you a self-directed investor who is comfortable making your own investment decisions?
3. Your risk profile
   What levels of investment risk suit you? Are you comfortable with fluctuating investment values or would you prefer the security of a low risk investment?

Find out more

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