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Online Share Trading

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To Simon

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bothac_1
Contributor
Hi I bought FSRSBZ earlier today at 12c. At about 16:39 I placed a sell order at 13c. 4 min later FSR went to 2454 and SBK warrants had to buy for 13c. Unfortunately they only bought 19000 and something. I'm thus selling at a loss with trading costs. Is it possible to ask that no trading fee be charged? Who would I phone for this? Thank you.
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3 REPLIES 3
SimonPB
Valued Contributor
the low volume bid from SB warrants would have been due to low hedge volumes on fsr. Can we reverse the tarding fee, fraid not.
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bothac_1
Contributor
Ok I understand. Could you please explain what "low hedge volumes on fsr" means?
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SimonPB
Valued Contributor
well when you buy a put warrant the issuer hedges the position, in this case they will sell fsr shares into the market. Now you can only buy as many of these puts that they can sell fsr shares. When you now sell back to the issuer they have to buy back the fsr shares, and again they can only buy back warrants from you for what they can buy on the fsr share. inverse for calls. This is why warrant (any derivative product) is as liquid (or has the potential to be) as the underlying asset.
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