Traders may include warrants in their investing strategies as they provide an alternative way to conduct leveraged trading on Australian shares. They offer access to some of Australia’s leading companies' shares and a variety of other underlying instruments, such as indices, currencies, commodities and listed managed investments. Like options, warrants are listed and traded on the Australian Securities Exchange (ASX).
Warrants derive their value from an underlying instrument, for example a company share. They give the holder the right to buy or sell the underlying instrument at a particular price from or to the warrant issuer. Alternatively, holders can be entitled to a dividend at a particular time.
