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

Warrants

Reply
k_
Occasional Contributor
New to the site, decided to join the warrants game quite late in life. How does one practically convert the warrants into shares. I have seen the Exercise price, but what on earth os the Exit/Entry Price? My ex-husband reckons that I can't make money with warrants because I will need to pay for the shares in full when I exercise?Is that true or what? I am confused because I have 2 accounts(1 for Shares, and for Warrants), how does this work exactly? P.S. When I make enough to buy a yatcht, and tell my ex to stuff it; I'll give the best advisor a cut:)
0 Kudos
16 REPLIES 16
barry_1
Super Contributor
Can i have that in writing?
0 Kudos
barry_1
Super Contributor
Read my reply to JS2,consider this your first lesson!Much better u attend a warrant course first before trading,your second lesson.Third lesson be prepared to loose up to half of initial Rand u spend ,mind u that focuses the mind,don't expect to make a fortune trading warrants.Try shares and instalments first.
0 Kudos
Brazen
Super Contributor
k, when you use words like 'new', 'game', 'confused' and 'yacht' in relation to warrants, it's probably best to wait a while before trading them. Barry's spot on - do the course. In my opinion warrants are [email protected] instruments, there are way better methods of trading with gearing.
0 Kudos
Not applicable
YEH K warrants a dangerous game, i am still waiting to meet a successful warrant trader, any out there with some advice???????
0 Kudos
john_1
Super Contributor
Chartist, Barry, Gravy, YNWA, TZ, John, Goldie. the list is long, but the list of failures is longer and in that there is a warrning... to answer your question, you dont have to buy the shares on expiry. Brazen is right trade instalments, offers some gearing, always in the money, and you get the div's..
0 Kudos
Not applicable
Following on a previous thread where a warning was issued regarding barrier instalments - are these designated by any specific code?
0 Kudos
Not applicable
The STAs have no barriers so I always use them if possible. HotEds from Investec all have barriers. They are usually far away tho, and the Hoteds often give better gearing. Problem is when the sh*t hits the fan, as happened recently, those far away levels approach rapidly. Then you are forced to sell at what is usually the worst time. The smart money buys your nice cheap shares and rides them all the way back up. That's annoying.
0 Kudos
john_1
Super Contributor
if the gearing is over 2 and it is an investec warrent always phone and check...011 2864742
0 Kudos
Brazen
Super Contributor
Sorry, that was me. Wrong account.
0 Kudos
john_1
Super Contributor
Morning B I am in the mood to make some money, what you up to.
0 Kudos
Brazen
Super Contributor
Gathering nuts in May, my little squirrel. Buying INL, JDG and IMP on red days, getting a little stash going. Anything below 80 on INL, JDG at around 63, and IMP at 209. Got STAs on JDG and IMP, and contract on INL. Looking at ARL today, not in there yet.
0 Kudos
john_1
Super Contributor
Cool I will have a look through the charts now. will let you know I like agri
0 Kudos
Pleiades
Frequent Contributor
I have an investment strategy that works every time: Buy shares that offer value (small cap, contruction, food presently) make some cash on them . Take cash and buy geared SSFs and lose most of it. Lick wounds, go back to equities. Works like a dream. Yacht, no. That's just a hole in the ocean lined with cement into which you pour vast amounts of money.
0 Kudos
boing
Frequent Contributor
Hi Brazen. Can you give a few examples other than installments. And what is an STA?
0 Kudos
k_
Occasional Contributor
Oh golly, you fellas aren't helpful at all. I can't make much trading shares because I am such a small investor. I know with warrants I can gear up my profits and all; I just wanna know how it works in practice
0 Kudos
CHATTYCHAT
Super Contributor
As you've noticed the fellas are helpful but on an advanced level and each follows a personolised stragedy - follow the warrants course under Help and Education (Left on your screen, second line on the menu)
0 Kudos