Types of Warrants Offered on SGX

Date: August 14, 2017

Warrants listed on SGX are primarily European-style and may only be exercised on the expiry date. At expiry, the settlement of the warrants is usually made in cash rather than a purchase or sale of the underlying asset.

Types Call Warrants Put Warrants
Market View A Bullish View of the underlying asset A Bearish View of the underlying asset
Rights of Warrant Holders Holders have the right, but not the obligation, to buy the underlying assets from the issuer at a predetermined exercise or strike price on the expiry date Holders have the right, but not the obligation, to sell the underlying assets to the issuer at a predetermined exercise or strike price on the expiry date
Lifespan Warrants have an average lifespan of 3 to 9 months. Warrants are also offered with longer tenure between 1 to 3 years.
Settlement if warrants expire in-the-money Cash settled if the settlement price is above the exercise price Cash settled if the settlement price is below the exercise price
Potential Loss Total investment outlay