TOPI warrants

[#1]

I understand the principles of warrants, but have never traded them. Can anyone advise if there is sufficient liquidity in the top 40 tradeable warrants at the moment to risk trading in them?

[#2]

My feeling is yes, there is. If ur looking for gearing take a look at the WAVe warrants ( with the underlying being the TOPI ) issued by DB.One thing though, be very cautious as they have barriers and when they go through that barrier theyre gone - even intraday price knocks them out and theyre wqorthless. You ll recognize them by the 5th letter of the name, eg topdWt - where d = Deutsche Bank, the issuer and W = WAVe. There is also a tutorial on www.x-markets.co.za By the way, if ur looking to trade TOPI warrants, always have the phone numbers of the issuer at hand so you can get answers to your questions. I have most of the numbers if u want. good luck.

[#3]

Just be carefull of DB wave matrixes , they often take up to a few minutes to update them after each trade , then u have to phone them everytime and ask them out to update the matrix... VERY frustrating. Also full of excuses bout system problems etc etc. I got so frustrated with them , that i change to share instalments like BILSTC whith gearing of nearly 7x at the moment, and no barrier

[cfm]

With warrant above 10c, the issuer should be in the market all the time, so there should not be a problem with liquidity. But, sometimes, when the market moves quickly, issuers develop sudden system problems and can not make a market. At those times, you are left to the mercy of the market. It is very good advise to keep the phone numbers of the issuers available.

[#5]

thanks guys!

[Shard]

Liquidity is always something to worry about with warrants. Generally, liquidity increases the closer they are to expiry, well thats what I've found.

[#7]

Thanks for the tips so far, there are still too many unknowns for me to start trading in these yet. For instance, what is the difference between the market bid / ask and Deutsche Bank bid / ask? Do any of these nueances (such as the realities of trading these instruments) get covered in any useful training courses?

[#8]

I guess the only way to find out would be to compare matrices of different issuers, but when/if u do decide to trade these then you actually must accept the matrix layout. I have had problems in the past where they have an excuse for whatever problem, but after a call to the Ombudsman it all gets sorted, so youre not actually at the mercy of the issuers whims.