Warrants belong among financial derivatives - derived securities. They represents the right to buy (call warrant) or sell (put warrant), exactly specifies amount of underlying asset (stocks, share index, currency, commodity) for pre-arranged strike price and on fixed date - maturity. Very attractive attribute of warrants is leverage, because of which you may invest much lower sum than with investing in underlying asset. The current price of warrant varies on the price of underlying asset. Leverage guarantees that a little percentage change in asset's price causes big change in warrant's value ...more