Simon Hi,am just wondering what "The advantage of warrants for investors is that they have unlimited upside, but their downside is limited to initial premium paid." Does this mean that however the gold and plat prices go, the bank will always pay you what you paid, even if the ruling price is way below what you initially paid? I think not!
simon, is liquidity a problem with warrants. lets say u are within strike price and your trade is valid but u put in a bid/offer and there are no takers..can that be common with warrants as opposed to ssf?
I've found it depends on the underlying share, but yes, liquidity is lower on warrants. A SSF's liquidity is the same as the underlying stock, well the liquidity of a 100 underlying shares trade to be exact. I used to actively trade warrants on the gold miners, never really felt like I had any liquidity issues though.