There are a wide range of warrants and warrant types that are available in the market. There are different reasons for which you might invest in one type of warrant and these reasons may be different from the reasons you for which you might invest in another type of warrant.
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Equity Warrants: Equity warrants are the name given to call and put warrants.
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If you invest in call warrants it will give you the right to buy the underlying securities
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If you invest in put warrants it will give you the right to sell the underlying securities
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Covered Warrants: A covered warrant is a name given to a warrant that has some underlying backing, for instance the issuer will purchase the stock before hand or he will use other instruments in order to cover the option.
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Basket Warrants: As if there is a regular equity index, warrants can be classified at, for instance, an industry level. This means that it mirrors the performance that is shown by the industry.
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Index Warrants: An index as the underlying asset are used by Index warrants. If you use index call and index put warrants then your risk is dispersed it is similar to what happens with regular equity indexes. Here you should not that they are priced using index points. This means that you deal with cash and not directly with shares.
