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Structured Warrants

A structured warrant is a leveraged financial instrument which derives its value from the value of an underlying security. A structured warrant can provide exposure to the underlying security for a fraction of the underlying securities price.


For a physical-settled structured warrant, the warrant holder has the right, but not the obligation to buy the underlying security from the issuer at a predetermined price or Exercise Price at expiry or at anytime during the tenure of the call warrant.


For a cash-settled structured warrant, the warrant holder can exercise at expiry or anytime within the tenure of the warrant to receive a cash payment based on the positive difference between the underlying security price and Exercise Price of the call warrant, adjusted by the Exercise Ratio and any other incidental charges.

1. Leverage play
Gearing ratio of 4 to 12 times.
2. Unlimited Upside and Limited Downside
The maximum loss is the price of the structured warrants paid by the warrant holder.
3. Better Alternative than Share Margin Financing
No margin call
No processing fee, rollover fee, etc.
Limited downside
No collateral required
Substantially higher leverage
Generally, share margin financing facility will require a security cover between 1.5 times and 2.5 times of approved securities
4. Low Transaction Cost
Less brokerage as call warrant price is a fraction of the underlying security price.

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