Cc Digisign Warrant with airSlate SignNow

Cc digisign warrant

there are many reasons why structured warrants are so popular among investors the first is leverage or gearing level a warrant enables you to gain exposure to a security for just a fraction of its price therefore warrants tend to move in greater percentages than the underlying shares offering the potential for higher percentage returns than if you had bought the shares directly the second reason is limited downside losses because warrants are so much cheaper than their underlying asset you won't lose nearly as much money if the asset Falls in value the third reason is lower capital outlay if you don't have the available funds to purchase shares in the underlying asset you could purchase call warrants and still benefit from a price rise because of the significantly lower outlay for warrants brokerage and transaction costs are also lower fourth there are no margin calls even if the underlying share or index moves adversely you won't have to make margin top-ups the maximum exposure to the investor is always established at the start of the trade the fifth reason is diverse market exposure by purchasing index warrants you can participate in an entire market or sector without having to own a large portfolio of its constituents also warrants on foreign underlying shares allow you to invest in overseas markets without the risks of going offshore next warrants allow you to go long or short on the underlying asset with call warrants you can boost your profit potential if a stock goes up while put warrants enable you to benefit from sell downs put warrants are particularly useful as they are one of the few products in Singapore that allow retail investors to go short on stocks finally all warrants listed on SGX have designated market makers to provide continuous bid-ask prices allowing you to buy and sell warrants any time during trading hours however like all financial instruments structured warrants do come with risks unlike their underlying assets warrants have a limited lifespan and if they expire out of the money they become worthless next just like warrants can produce higher percentage gains the losses can be magnified as well the good thing is losses are limited to your total investment outlay and finally as a warrant holder you are an unsecured creditor of the issuer meaning if the issuer is unable to fulfill their obligations you have no claim to any of their assets for many investors however the rewards of trading warrants outweigh the risks in our next video we'll discuss the ways you can use structured warrants in your portfolio you