The following is a list of CFD's ('Structured Warrants' as they are called ONLY in Malaysia)
In the Money:
https://imgur.com/cEk679H
Out of Money:
https://imgur.com/KVsaLxJ
It does'nt take a rocket scientist to figure that the Share price
of THE ASSET (The Underlying Share) will be close to if not less than
the Exercise Price of the Warrant at expiry.
Historical data clearly shows that 95-98% of the investors lose money
in CFD's. In fact. most issuer's around the world have this statement
as a Disclaimer. 2 Pages of a Macquaire Issue Document can be viewwed
in the following link. 2nd page contains all the DISCLAIMERS.
https://imgur.com/zPEaNub
The point here is simple.
1. CFD's have ONE CERTAIN result. The issuer wins.In 95-98% of the cases
the holder of these warrants at expiry lose ALL their investment.
2. Warrants, by themselvews, have ZERO VALUE. They require an
Underlying Asset.
3. The issuers are permitted by law to hedge n the asset without disclosure.
4. The issuers are permitted to short-sell he asset when short-selling
was banned on KLSE. The authorities call them "Permitted Short-sellers"
In all of the above, the investor has NO SAY. While doing all of the above, the ISSUER ensures that the price of the Actual Asset (The Share) is unjustifiably within the Exercise value of the Warrant (That really has no value).
To top it all, the SC says "An informed investor is a protected investor"
FYI, CFD's on Equity are banned in several countries including the USA.
They are permitted on Indexes and Currency. Why are they banned elsewhere? The warrants they say are "Cash Settled". European Style more so :). Just like the casino.You call this investment ?
From time to time, you have the very same issuers of the warrants issuing Target Prices (THEIR target price) to conveniently suit them.
My only intention is to make people think about the wisdom in such
speculative instruments. As if speculation on a REAL ASSET itself was not enough.
DO WE STILL NEED STRUCTURED WARRANTS ?
It's up to you !
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10 comment(s).Last comment by Morpheus61 2020-12-12 20:29
To be fair the Investment Bank's,the Structured Warrants on the Glove companies were a Really Bad Judgement call. Un-expected. Whatever it is, they are the death on investors. Imagine the huge sums of money the IB's are sucking out of the investors.
No foreign markets have Structured Warrants. Some have Contract For Difference. Why can't the IB call it that ? No balls ? But they are banned in many countries, including the USA.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
Posted by Morpheus61 > 2020-12-12 19:48 | Report Abuse
The following is a list of CFD's ('Structured Warrants' as they are called ONLY in Malaysia) In the Money: https://imgur.com/cEk679H Out of Money: https://imgur.com/KVsaLxJ It does'nt take a rocket scientist to figure that the Share price of THE ASSET (The Underlying Share) will be close to if not less than the Exercise Price of the Warrant at expiry. Historical data clearly shows that 95-98% of the investors lose money in CFD's. In fact. most issuer's around the world have this statement as a Disclaimer. 2 Pages of a Macquaire Issue Document can be viewwed in the following link. 2nd page contains all the DISCLAIMERS. https://imgur.com/zPEaNub The point here is simple. 1. CFD's have ONE CERTAIN result. The issuer wins.In 95-98% of the cases the holder of these warrants at expiry lose ALL their investment. 2. Warrants, by themselvews, have ZERO VALUE. They require an Underlying Asset. 3. The issuers are permitted by law to hedge n the asset without disclosure. 4. The issuers are permitted to short-sell he asset when short-selling was banned on KLSE. The authorities call them "Permitted Short-sellers" In all of the above, the investor has NO SAY. While doing all of the above, the ISSUER ensures that the price of the Actual Asset (The Share) is unjustifiably within the Exercise value of the Warrant (That really has no value). To top it all, the SC says "An informed investor is a protected investor" FYI, CFD's on Equity are banned in several countries including the USA. They are permitted on Indexes and Currency. Why are they banned elsewhere? The warrants they say are "Cash Settled". European Style more so :). Just like the casino.You call this investment ? From time to time, you have the very same issuers of the warrants issuing Target Prices (THEIR target price) to conveniently suit them. My only intention is to make people think about the wisdom in such speculative instruments. As if speculation on a REAL ASSET itself was not enough. DO WE STILL NEED STRUCTURED WARRANTS ? It's up to you !