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Warrants/CBBCs


Warrants/CBBCs help investors to capture potential profits in both bull market and bear market. Their gearing features allow investors to pursue a low cost and high return investment strategy.

Implement your trading strategy with our special commission rate offer. We also provide you great tools and helpful education supports to enhance and improve your trading.
What are warrants and CBBCs?

Warrants CBBCs
Warrant is a right but not an obligation to buy or sell a certain underlying assets (stock, index, currency, or commodity) at the strike price (or the exercise price), on or before the expiry date (or the maturity date).

In Hong Kong, at expiry, settlement is usually made in cash rather than a purchase or sale of the underlying asset.

CBBC is a type of structured product that tracks the performance of an underlying asset without requiring investors to pay the full price required to own the actual asset.




Difference between warrants/CBBCs*

  Warrants CBBCs
Types of product Call warrants/Put warrants Bull contracts/Bear contracts
Mandatory call No Yes
Strike price Set by issuers, including in-the-money, at-the-money and out-of-the-money Set by issuers, only in-the-money
Expiry date of newly launched product 6 months íV 5 years 3 months íV 5 years
Time value Decay is large. The percentage of time value accounts for a large proportion of warrants price, especially for out-of-the-money warrants Decay is small. The percentage of finance cost accounts for a small proportion of CBBC price

*source from http://www.hkex.com.hk/eng/global/faq/cbbc.htm

Benefit of trading warrants/CBBCs

Warrants/CBBCs hold many unique features that attract the investors:


Gearing
Warrants/CBBCs are leveraged products. They can multiply your gain if you invest in correct direction, and vice versa.
Hedging
Put warrants/bear contracts allow you to speculate on falling markets, and you can use warrants/CBBCs as a hedging tool to protect your portfolio.
Low Transation Cost
Trading warrants/CBBCs typically costs less than trading the inderlying assets.
Why BOOM for warrants/CBBCs trading?

You can take advantage of our special offers and advanced order type to work out your investment strategy.

Special commission offer

We offer a special commission rate of 0.0675%, without minimum commission charges, for warrants/CBBCs trading. That means it only costs you HK$6.75 for transaction amount of HK$10,000.

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Maximize investment profit with better trading features

Our powerful two-way sell order allows you preset target sell price for your stocks, so that you can minimize your potential loss in a volatile market.

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