Introduction
There are two types of structured warrants, i.e. call warrants and put warrants.
(a) If a market is on uptrend, then call warrants will rise and put warrants will fall.
(b) If a market is on downtrend, then put warrants will rise and call warrants will fall.
Structured Warrants Offered in KLSE
KLSE offered trading in FBMKLCI and HSI call warrants and put warrants.
KLSE
Call warrant = (FKLI – Exercise price)/ratio
[Note: FKLI (FBMKLCI futures) is used in calculation and not KLCI]
Put warrant = (Exercise price – FKLI)/ratio
HSI
Call warrant = (HSI futures – Exercise price)/ratio
Put warrant = (Exercise price – HSI futures)/ratio
FKLI Call Warrants Offered in KLSE
FKLI Put Warrants Offered in KLSE
Hang Seng Index Futures Call Warrants Offered in KLSE
Hang Seng Index Futures Put Warrants Offered in KLSE
Live FKLI and HSI Futures
Macquarie Investment Bank shows the live FKLI and HSI Futures in their warrants website, as follows:
https://www.malaysiawarrants.com.my/home?gclid=EAIaIQobChMIxZej3Jf61wIVAiUrCh0IdAsrEAAYASAAEgJ_b_D_BwE
Information on Exercise Price, Ratio and Expired Date
The above information can be obtained from i3investor forum.
Trading time
(a) FKLI structured warrants
First Session: 9.00 am to 12.28 pm
Second Session: 2.30 pm to 4.42 pm
(b) HSI Futures structure warrants
First session 9.15 am to 11.58 am
Second session: 2.30 pm to 4.28 pm
[Note: HSI futures will continue to trade from 5.15 pm until 1.00 a.m. although our KLSE has closed at 5.00 pm]
Advantage of HSI futures structured warrants compared to FKLI warrants.
(a) HSI futures structured warrants have market makers (such that the buy queue and sell queue will be adjusted accordingly by the investment bank, i.e. Macquarie) but FKLI futures are all controlled by traders alone.
(b) Volume traded in HSI futures structured warrants is very much higher than that of FKLI.
Conclusion
(a) If you think that the global markets will continue to rise further, then buy call warrants.
(b) If you think that the global markets are heading for a meltdown/crash/serious correction, then buy put warrants.
(c) The risk in trading structured warrants is extremely high. [Please don’t ever sailing]
(d) The cheapest HSI call warrants is HSI-C1X and it is already in money already because HSI Futures has already crossed 32,000 points.
Strong Hang Seng Index Futures:
https://www.investing.com/indices/hong-kong-40-futures-advanced-chart
http://klse.i3investor.com/blogs/Chloe_Tai_Blog/145155.jsp
