Trading Warrants

[swatiabhyankar]

I have good share portfolio. I want to get into trading Warrants.
The intention is to convert these warrants into Shares when they mature
I dont have enough money now to buy the shares but I know I will save enough to buy them later on.
However when I look at Warrant markets there is no movement there. The volume is 0 and there is Bid and Sell price which looks to be quoted by Market Maker rather than decided by the market. If I create a trade around Bid price then it never gets executed and expires.
Please tell me what I am doing wrong

 

[Boggo]

I have good share portfolio. I want to get into trading Warrants.
The intention is to convert these warrants into Shares when they mature
I dont have enough money now to buy the shares but I know I will save enough to buy them later on.
However when I look at Warrant markets there is no movement there. The volume is 0 and there is Bid and Sell price which looks to be quoted by Market Maker rather than decided by the market. If I create a trade around Bid price then it never gets executed and expires.
Please tell me what I am doing wrong

Maybe if you told us which warrant(s) you were looking at we might have some idea what you are talking about.

I use warrants regularly without an issue on the top stocks.

 

[swatiabhyankar]

I am trying to buy warrants in ASX top 20.
I am trying to buy Installment or Call warrants with Strike Price equal or less than Share market price. I found shares with Strike price more than Share price with some volume

But Volume for warrants I want to buy is always 0 and Bid and Sell does not change. The order gets cancelled at the end. Which broker do you use. Is it dependent on the broker.

 

[Boggo]

I am trying to buy warrants in ASX top 20. But Volum shown is always 0 and Bid and Sell does not change. The order gets cancelled at the end. Which broker do you use. Is it dependent on the broker.

Broker is irrelevant. I am assuming that you have got authorisation to trade warrants with your broker.

If the volume is 0 it means that the warrant hasn't traded today and if the Bid and Sell doesn't change then the underlying price hasn't changed.

Tell me the code of what you are trying to trade or of the underlying.

 

[swatiabhyankar]

For example I want to Buy Westpac WBC shares down the track
Currently WBS is trading around 32.2

The way I understand Warrants The Warrant bid and sell price will be more than difference between Share Price and Strike price as you have to pay some premium to the warrant issuer. I dont want to pay too much premium now

So I look for all call warrants with Strike price between 28 and 33 with any expiry date
There are many Warrants listed with this filter.
However very few of them are actively trading today

When I look at course of Sale it is quite empty. Trading depth has only one seller and may be one buyer which could be the Market Maker's trades. Or 1 buyer but no seller or vise versa

What I am doing wrong?

 

[Boggo]

For example I want to Buy Westpac WBC shares down the track
Currently WBS is trading around 32.2

The way I understand Warrants The Warrant bid and sell price will be more than difference between Share Price and Strike price as you have to pay some premium to the warrant issuer. I dont want to pay too much premium now
Then you can only buy one that is about to expire


So I look for all call warrants with Strike price between 28 and 33 with any expiry date
There are many Warrants listed with this filter.
There are if you include all types of warrant - what type do you want to buy ?
However very few of them are actively trading today
and can be that way for weeks on some of them

When I look at course of Sale it is quite empty. Trading depth has only one seller and may be one buyer which could be the Market Maker's trades. Or 1 buyer but no seller or vise versa
market maker is 1 bid and 1 ask minimum usually

What I am doing wrong?
not understanding all the variables, the different types and how they work etc etc

Go here http://www.asx.com.au/education/warrants-online-courses-instalments.htm

and here http://www.asx.com.au/prices/theoretical_price_calculators.htm