I have read every document on gearing and still it does not make sense. What effect does gearing have on your selling price if the selling price goes up or down due to normal trading by Mr. Market? The gearing has no effect on the price of the warrant. So here is the million dollar question - What is the purpose of having gearing on a warrant if it has no effect on the selling price? It does not increase your profit. Actually, it does not seem to do anything. Mr. Market controls the price of the warrant. You buy low and then it grows as per normal trading. Having a gearing does not mean that if you bought at 10c (with a gearing of 11) and you sell at a price of 20c that you will get 11 x 20c. So what is it's purpose. Please do not give me the warrant brochure answer. The brochure answer just states that if you have a gearing of 10 and the underlying goes up by 1%, then you have grown by 10%. What has actually grown by 10%? What are they talking about? The price of the warrant is stil determined by the traders. So once again, how does gearing increase your chances of making a bigger profit?