xjowos put warrant vs rio awc wdc ex div, page-2

kitviet, sorry, I don't have a warrants window open but I'll take your word for it. Another reason people buy put warrants is to 'hedge' - that is, they may own a lot of rio or whatever and don't want to sell them despite a down turn in price. They may then buy put warrants which of course go up in value as the price of the parent stock declines. This way they don't lose any or much money and don't have to pay tax on the sale of the parent warrant, assuming they are in profit.

Barrier index warrants are dangerous critters for inexperienced traders. They lose all value if a certain level of the spi (the index future for xjo) is reached, even if its at night. On the other hand they can make you a lot of money in a very short time if you have a successful trade, or lose you a lot even faster if you're wrong. You also can't use stops or conditional orders with warrants, making them extra risky. They certainly can be extremely volatile. Much better bang for your buck than cfd's or other warrants tho. Hope this helps. cheers!