Barrier warrants

[#1]

for TOP40 which are the highest geared ones right now?

[#2]

TOPDWB - call, TOPDWP - put

[#3]

https://www.x-markets.co.za/

[#4]

they say, ABSA say they did not issue new barriers bcause, 'they got knocked out badly, Is this because, they(ABSA) lose money in volitile markets, or because, their clients lose money? is their any other way to trade the TOP40, highly geared, low margin?

[#5]

Standard Warrants, but the gearing is usually not as high as barriers, and you have pay time decay. Barriers and warrants are a zero sum game for the issuer, as far as I know, so the only one hurt would be the client.

[SimonPB]

barries also have time decay, but it is linear so less servere at expiry. And not a zero sum game for the issuer, the issuer does not loose if they hedge properly (and no reason why they shouldn't be properly hedged). Basically they are sellign risk at a price to the trader.

[kumar]

In the case of wave warrants who gets the proceeds if the strike price is reached. Surely the bank profits this. If this is true then they gain from the spread, the hedge and your capital.

[SimonPB]

the strike = barrier so they have no value when they hit the barrier. They make money from the spread, but remembering there is also a spread when they hedge so this si small. With the hedge itself they make if you make and loose if you loose.

[#9]

Sorry to nitpick, but this has always grated me: Simon, please spell "lose" correctly....

[asylum]

Zephyr how much did you loose today.lol

[#11]

Asylum, I feel very loose today, because for once I didn't lose as I am long on FSR!

[asylum]

are you an English teacher, i hink thats the only reason someone would be annoyed, hope my spelling is ok.

[#13]

No, I'm not and I am not normally this pedantic about spelling, except for this specific word, as it seems to have creeped into our language recently and more and more people are getting it wrong! Loose and lose are two totally different things. PS Your spelling is fine :) PPS I am actually Afrikaans :)

[#14]

Crept is the correct usage, not "creeped". I'm not pedantic either.

[#15]

LOL - you're right!

[#16]

but the question i am tryig to ask is , that why do these warrant issuers only issue TOP40 barrier warrants in low-volatility markets? while I make money in high-volatility markets?

[#17]

Methinks it's because they have to wait a while to reissue the same barrier code. I know DW barriered (sic) up all their call codes in the great depression of January.

[SimonPB]

Xenu, they issue all the time and have been for the last 6 years - but soemtimes there are less in play then other times due to them being barriered as happened in Jan.

lose, loose, loss - some spelling cop got a nice easy rule so I can remember which is which.

[john_1]

You will lose your shirt when your stops are loose, and you take a big loss. me thinks, but we all know I am a spelling retard not a cop!

[#20]

, when i called ABSA, they told me that they will only issue warrants when the markets quiet down. is their any reason for them to do this? it kind of defeats the volatile purpose of warrantsIMO