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Online Share Trading

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Trading Warrants - Waves

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BC02
Super Contributor
From my limited knowledge, warrants become preferential on more intricate arbitrages (Ive heard terms like Butterfly arbitrages(?) and the likes, they are complicated if your not getting trained in them).

Yes a person can make money with warrants, but its a little bit harder than CFD's (especially the newer you are to trading) because you have to understand the time decay and warrants are very illiquid (causing slippage) vs a CFD.
A CFD (vs an SSF) is also more popular amongst the traders, there are times when you need to stay with the crowds, and you have entries and exits based on your exact analysis.br>
Trading is not easy, choosing an instrument that is not easy by itself makes the path of learning a little bit harder. If you do go for it, good luck!
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Barry. I notice: There only two knock out warrants, TOPSKN 28000 and TOPSKQ 34000. Does the warrant automatically kick you out if its a call and it falls below 28000? Why does it have a expiry date? For instance: TOPSKN expires in 144 days.
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Barry. I notice: There only two knock out warrants, TOPSKN 28000 and TOPSKQ 34000. Does the warrant automatically kick you out if its a call and it falls below 28000? Why does it have a expiry date? For instance: TOPSKN expires in 144 days.
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SimonPB
Valued Contributor
warrants have a market maker, so as liquid as the underlying ..
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SimonPB
Valued Contributor
the problem with warrants is that the trader may call the direction right but buy the wrong warrant, selection critical .. I got a video at http://www.justonelap.com/webinarDetail.asp?intWebinarID=34
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Preston
Super Contributor
Simon, excellent video. Loved the process of elimination. Previously i loved the one you did on "closing auction", but i guess this one tops that. One for the library.
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Rams
Super Contributor
Yeah, to add to the one you made on the 2000 points short?
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kwagga
Super Contributor
It's usually a constant battle to make anything from warrants. Too many things that you have little control over. Also, it's used best on shares with a hight ATR. I use it very seldom anymore and only on things that I expect will move quick and with quite a bit of volatility. I also just pick warrants issued by SBK.
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Rams
Super Contributor
back to Gugu's quesion. There are no ways to predict market movements,you just take a view on the underlying, based on a system you set up for yourself, if you wrong, your risk is your stop loss. As Simon pointed out, the only known in the market is your stop loss(risk). And possibly one of the advantages of warrants is that though its leveraged, you cannot lose more than your initial "margin"...In CFDS/futures, the stop loss is a Known Unknown?
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Do SSF also have interest costs or its based on pips?
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Gugu
Occasional Contributor
Thank you very much indeed RAMS. Your input is highly appreciated.
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Gugu
Occasional Contributor
Traders, Thank you very much for an excellent discussion. Your inputs are truly invaluable.
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