Category: Money tips Release Date: 2006-10-18
Warrants trading in the mainland stock market to re-start, the vast majority of investors are new and unfamiliar. As the warrant is a kind of leverage with the high-risk financial securities products, while shares of each company's reform program contained in the warrant articles also vary, so investors should pay attention to in choosing investment warrants the following questions:
(1) must be a careful analysis of the Warrants on the price of the program covered by the deep-seated meaning. With the split share structure reform in full swing, there will be more and more companies are stock reform program includes warrants this derivative products, as all listed companies vary widely, so share reform program is also not the same as the meaning of which warrants extended the There are differences, which means that the results of the exercise of warrants resulting from the nature of the inconsistency. Investors should be an accurate grasp of the meaning of the price of the program, for investors control risk and increase revenue will be helpful.
(2) should avoid all of the funds are invested in warrants, warrants a higher risk of species, can not warrant the same position in the stock position to look at, in particular, should avoid all of the funds are invested in warrants. Otherwise, good luck, of course, when a considerable profit, but if the direction of wrong judgments, losses will be relatively large.
(3) Note that the timeliness of the risk warrants. The investment value of warrants, including the intrinsic value and time value, time value of warrants as the expiration date will move closer to the reduced long-term holders of the result is likely to be the ultimate loss of all the royalties. Therefore, time-sensitive nature of warrants, with duration, generally ranging from three months to two years, when due, such as warrants the exercise does not have value, investors will lose all their royalties.
(4) Investment Warrants shall strictly follow the stop-loss principle, once the stop-loss should promptly withdraw from below and not wait for some sort of relief, or try to cover their short positions through the low share of low-cost. The reason is that the principle of strict stop-loss: first, when the warrants are deep out of the money, its price sensitivity will be greatly reduced, unless the underlying securities rebounded sharply, or almost no sort of relief possible; Second, the warrant value will decrease over time Therefore, a passive position to wait is often worth the candle.
(5) Investment in warrants a moment when you can not covet cheap. Do not simply because the price of a warrant to buy low away. For some the price is only a few cents of the warrants, usually There is an enormous risk. After a period because the warrant after the warrant's value will be zero, investors would lose all the principal.
(6) can not be concerned about the broader market changes from time to time, do not invest in warrants. Warrants more suitable as a short-term investment products, position time normally should not be too long. Because it is fundamentally different from equity investments, it is not suitable for Mai Daoshou after the muffle, due to warrants prone to sharp price fluctuations, thus the need for close attention to post-purchase warrants and the warrant itself, the underlying securities price movements, if investors can not always stare disk, you should try to avoid investing in warrants.
