*~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~* { Sila lawat Laman Hizbi-Net - http://www.hizbi.net } { Hantarkan mesej anda ke: [EMAIL PROTECTED] } { Iklan barangan? Hantarkan ke [EMAIL PROTECTED] } *~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~* PAS : KE ARAH PEMERINTAHAN ISLAM YANG ADIL ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Assalamualaikum, Warrant is actually one form of derivative instruments issued by a company and traded in the stock market. A warrant is normally attached to an ordinary share or 'mother share' of a company. This means that the price of warrant would depend on the price of its mother share. To trade a warrant, one needs to understand few terminology - exercise price or strike price, expiration date, premium, gearing or leverage, and delta. Exercise price - the price at which a warrant holder can convert the warrant into an ordinary share. Eg. if one has an X warrant with X-Price of RM2.00, then he/she can convert the warrant into ordinary share by only paying RM2.00/share although the share is currently traded at a price higher than RM2.00. Expiry date - the date when the warrant expires. Normally a warrant is issued for a life span of 5 years. Onced expired, it will have no value or 0 sen. To buy a warrant, make sure that it still has at least one year to expire. Gearing means for the same amount of money, how many times one can get exposure into a company. Eg - if a share is priced at RM2.00 and its warrant is priced at RM1.00, then the gearing is 2 times. Delta - a ratio of price increase in warrant for RM1.00 increase in mother share price. Eg - if a warrant has a delta of 0.5, if the price of mother share increase by RM1.00, then the warrant price akan naik lima posen. Premium - complicated sikit. Assuming one buys a warrant and immediately exercise the warrant, then the total amount that he/she has to pay (warrant price + X-price) minus the current share price is the premium. To buy a warrant : 1. Make sure that the company has strong fundamental. 2. There is positive outlook for the mother share. 3. Buy a warrant with the lowest premium or traded at discount. 4. The warrant still has a long way to expiration. Amacam ? Ada paham ka? Please do not just buy anything without knowing what we are buying. If a remisier recommend something ask some questions about the company. A remisier objective is to generate as many trades as possible. They will tell us to buy what we don't have and to sell what we have ( of course not all of them). Semuga ada manfaat. Wassalam __________________________________________________ Do You Yahoo!? Talk to your friends online with Yahoo! Messenger. http://im.yahoo.com ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ( Melanggan ? To : [EMAIL PROTECTED] pada body : SUBSCRIBE HIZB) ( Berhenti ? To : [EMAIL PROTECTED] pada body: UNSUBSCRIBE HIZB) ( Segala pendapat yang dikemukakan tidak menggambarkan ) ( pandangan rasmi & bukan tanggungjawab HIZBI-Net ) ( Bermasalah? Sila hubungi [EMAIL PROTECTED] ) ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Pengirim: Limbat <[EMAIL PROTECTED]>