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Warrants

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Hi Guys Does anyone trade warrants? They grow exponentially fast but its so difficult to sell off then.. Any thoughts guys?
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Super Contributor
Spread, time decay, costs, gearing. Difficult to make money unless you are already a good trader. Easy to lose money. Just my opinion.
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Hmm..you adequately summarized that! Had a bad experience..due to lack of experience :(
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Valued Contributor
how much different is that from CFDs or futures ??
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Super Contributor
He didn't ask about cfds or futures.
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Super Contributor
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Super Contributor
Warrants suck. i'd say the time decay loss with warrants is worse than interest paid on CFD's ..my opinion
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Super Contributor
Hands up anyone who has made money on warrants. There, I don't see any hands.
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Super Contributor
Stay away from warrants. You are dependent on a market maker and time decay is something else you can't control. High risk low reward instruments if you ask me.
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Super Contributor
Warrants... an instrument for those who have lost all respect for their money. They have a place as short-term hedge instruments IMO - and that is about it. I would far rather trade CFD's and manage my margin properly if I was inclined to take the risk.
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Valued Contributor
overt, diff is interest is liner, time decay is not and is very aggressive towards the end
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Valued Contributor
i made monet for years off warrants, and the reason I don't trade them any mores is same reason I don't trade CFDs any more .. I don't trade shares at all .. trick with warrants is that if you get the trade right but pick the wrong one you lose, most pick teh wrong one
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Super Contributor
Why do i wanna trade it after all of the above?, i can get no satisfaction.
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Super Contributor
i never traded warrants because i never understood them. But is not less of a risk than futures or CFDs as you cant lose more than your "margin", like on a day when the markets sell off 10-20%.
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Super Contributor
CFD's track "true" to the underlying share. Warrants are useless as soon as the price drifts more than a certain amount away from the strike - or if volatility picks up or... Iin no time at all - the warrant is so "out of the money" that you are left with a "stub" that represents an "interest packet" and nothing much more. So - the money that you put in is more at risk. A very professional instrument - that needs to be used mindfully as part of a portfolio. Trading then "naked" is a mug's game (or a genius's.)
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