Visit our COVID-19 site for latest information regarding how we can support you. For up to date information about the pandemic visit www.sacoronavirus.co.za.

bs-regular
bs-extra-light
bs-light
bs-light
bs-cond-light-webfont
bs-medium
bs-bold
bs-black

Community


Share knowledge. Ask questions. Find answers.

Online Share Trading

Engage and learn about markets and trading online

Gold and platinum reference warrants

Reply
Not applicable
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!
0 Kudos
6 REPLIES 6
SimonPB
Valued Contributor
no, it means you can only loose 100% .. with CFD and SSF you can loose more then 100% ..
0 Kudos
Shard
Super Contributor
0 Kudos
Not applicable
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?
0 Kudos
Shard
Super Contributor
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.
0 Kudos
Not applicable
Warrants have market makers. Read the warrants course.
0 Kudos
SimonPB
Valued Contributor
liquidity on a warrant is as per the underlying, also same as per ssf or cfd ..
0 Kudos