Skip to content

Warrants

Warrants give investors an alternative way to borrow to invest in some of Australia’s leading companies and a variety of other underlying assets, such as, indices, currencies, commodities and listed managed investments.

Broadly, there are two types of warrants:

ASX Warrants 

Investment Warrants  Trading Warrants 
Why are they used?
Borrow to invest in shares and increase exposure to potential capital growth, dividends and franking credits.
Why are they used?
Trade the rise or fall of shares, indices, commodities and currencies.
Investment time-frame:
Medium to long term.
Investment time-frame:
Short-term. 

Key benefits:
Leverage and no margin calls. 

Key benefits:
Leverage and no margin calls 
Key investment risks:
Leverage can magnify losses.
Key investment risks:
Leverage can magnify losses.
Used by:
Self-managed Super Fund and individual investors. 
Used by:
Self-managed Super Fund and individual investors. 

Warrants traded on the ASX market since 1991 and are issued by some of the leading investment banks in the world and Australia.

There are many types of warrants, each with different characteristics, risk profiles, leverage and terms. This provides investors with a lot of choice and as such you should be sure you take time to learn and understand how to best use warrants when making your investment decisions. ASX and warrant issuers have a number of resources such as online courses and booklets to help you understand the benefits, risks and uses of warrants.