I saw the name Fairplayer mentioned in the comments earlier today. I understand that he already retired from trading HSI warrants. I find his contributions to this forum very helpful and valuable.

Some of his comments are below:

"""Jun 22, 2017 10:20 AM

rick, index warrant especially HSI index warrant is a very high risk game, anytimes you can lose a fortune. If u are newbie better don't touch index warrant. There is no such thing as sure win game.

Jun 22, 2017 10:27 AM

rick, sometimes the index can go up or down in a blink of eyes, u may not react in time if u are just following me, u need to have your own cut loss/profit target which is very important.

Jun 22, 2017 10:51 AM

rick, don't count on EW on day trade, u just don't have much time to do analysis. It is a combination of social-politics, economy news and data, CBBC chart and 1 min RSI chart.
If u are satisfy with annualized returns of 10%-12% for long term investment, my suggestion to u is go for some small-cap fund such as Kenanga Growth Fund, Affin-Hwang Select Opportunity Fund etc. It is better than you lose money to market maker by playing the index warrant. Sometimes, HSI index warrant can lose 40-60% in a day, think wisely, it is a casino.""""




For those of you who have not interacted with him in this forum, I would encourage you to read his comments/feedback to have a better understanding of the risks in trading HSI structured warrants.

Since Bursa is off for today and tomorrow, don't you think it is damn high risk to buy any CWs last Friday. What happen if HSIF continues with the decline and end up with a 1000 points drop at end of these 2 days. You cannot cut loss even if you desperately want to do so. I totally agree with Kite on not holding over night and more so in the situation mentioned above. I rather wait for Bursa to resume trading on Wednesday before taking any position.

Thanks, fp.

Fairplayer, good morning. You earlier mentioned on studying the pattern of RSI 1 minute chart. Shall appreciate your explanation on what to look for here. Thanks

Ok then Brother Lim123.. I am very new to the HSI trading and hope to draw up a more consistent trading plan. Cheers

Sifu Lim123... sorry for the late response ... telima kasi manyak manyak for your clarification last evening. Understood your valuable feedback. Cheers

LIm123... firstly season greetings to you. Thanks for your guidance.

Need to get your further advice to have a better understanding of the market. Is banker you referred to just Macquarie or other issuers/bankers elsewhere involved in the Hang Seng Futures business. If more than Macquarie, each banker could have different positions in HSIF and thus different motivations to 'tilt" the index. Thanks. once

Thanks to Stingray sifu and his team for alerting the risks in chasing the Cs since early last week in light of the direction taken by the banker but still 4Cs have been sold out by MM.
Some signs of HSIF rebounding this morning but whether the momentum can be further sustained is still unclear.
Total inventory of the 4Cs is 78million ( C48, C54 and C60 - 20 mil each and C66 - 18mil) and the aggregate value is estimated not more than RM 25 mil (based on the average price of 30 sen before the frenzy to buy up recently).
For this sum involved, it is unlikely that the local MM alone can control the HSIF market to drive down the index but there are more significant forces in the bigger scheme of things.
An analysis of the CBBCs mandatory called in the HKEX market showed that bulls were slaughtered from beginning of December, with the bulk since early this week as the HSIF index fell to below 21700 yesterday.
So be aware of the bigger picture in trading the Cs and Hs in Bursa. Just my 2 sen worth.

Donald

Looks like you have to read much more to have a better grasp of the whole works of trading in SWs.

For a start, if you have yet to do so, read the education notes in the Learn More section of the MacM website.

Donald,

before we go further, do you know what is the Exercise Level for C72?

Donald

Let me try to explain:

1. MM that you refer to is MacQuarie Malaysia(MacM) but the Hang Seng Index Futures (HSIF)market is more than just MacM.
2. Beside the SWs issued by MacM, there are many other types of derivatives with HSIF as the underlying asset issued by other FIs, such as put/call warrants, bull/bear CBBC.
3. So the market is much much bigger than the H and Cs of MacM.
4. Since you mentioned on C50, let us refer to this C50 to better understand the risks/rewards of the trading SWs.when the C was issued on 20Jun16, the Exercise Level was 21600 and the prevailing HSIF was 21297. Expiry date is 29Dec16. The SW was offered by MacM at 87sen but little buying interest. Why? I leave you to find out yourself.
5. Thinly traded all this while and the price shot to 1.05 on 8Dec16 when the index surpassed 23100 that day but the only 6000 units were traded. Why so little interest when it exceeded the exercise level of 21600 by 1500 points? Are you familiar with Time Decay, Premium and Implied Volatility?
6. MacM issue both C and H because it is business and just like Genting which accepts both Big and Small on the TaiSei table.
6. As someone said derivatives trading is not so simple as 1+2=3.

Lim123 and Pari sifu

Terima kasih.

Lim123, you mentioned CBBC 21900 bull contracts. Please advise where I can get more details on these contracts, like what Stingray referred us to the End of the Day report in the Kuali website for more information on the actively traded warrants for the day. Thanks

Duit, can I join Group 4 as still in elementary level. Thanks

Welcome back.

Tan Boon Sun - My apologies for the oversight.

Tan Boon Sun -- please read the circular in the file below.
http://klse.i3investor.com/servlets/anpth/1147238.jsp

Tan Boon Sun - the bonus entitlement is 8,000 and not 16,000 shares. So on the assumption that the RCUIDS (or LA) is subscribed and share price remains at 27 sen, the position should be

rm 1,400 + RM 2,160 (8,000 bonus shares @27 sen) + RM 4,000 (8,000 LA @ 50 sen) + 8000 new warrants

So the position is a deficit of RM 640.

As a cross-check, by buying at 41 sen, the ex-cost price is worked out to be 29.285 sen ( RM 8,200 divided by 28,000 shares) and selling all the 28,000 shares at 27 sen will lead to loss of RM 640 ( deficit of 2.285 sen multiply by 28,000 shares).

C9 is now selling at 68 sen ( issue price of 53 sen, exercise ratio 200, exercise level 1640, maturity date 29Feb2016) whereas C7 is now selling at 27.5 sen (issue price of 52 den, exercise ratio 228, exercise level 1650, maturity level 31Jan2016). C9 is selling above issue price whereas C7 is selling below its issue price and both CWs are all out of money now. But why still want to buy C9? Wouldn't C7 be a better bet?