# How to recognize a good warrant



## Fab (30 March 2006)

I am new to warrant and currently hold few pdnwmc which are doing ok for me nevertheless my knowledge of them is very limited. Can someone explain to me what to look for in a warrant and how to trade them. I understand this is a very risky tool


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## wayneL (30 March 2006)

Fab said:
			
		

> I am new to warrant and currently hold few pdnwmc which are doing ok for me nevertheless my knowledge of them is very limited. Can someone explain to me what to look for in a warrant and how to trade them. I understand this is a very risky tool




Fab

Learn to understand options and you'll be 99% towards understanding warrants


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## RichKid (30 March 2006)

Fab said:
			
		

> I am new to warrant and currently hold few pdnwmc which are doing ok for me nevertheless my knowledge of them is very limited. Can someone explain to me what to look for in a warrant and how to trade them. I understand this is a very risky tool




Hi Fab,

There is some excellent discussion and material posted in this forum on that exact point, use the search tool to bring up the resources, use keywords and phrases that interest you. The ASX can send you a warrants booklet, good starting point: www.asx.com.au

All the best,
Rich


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## wayneL (30 March 2006)

Snap hehehe.

Yeah thats a good place to start... where Richkid said


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## RichKid (31 March 2006)

wayneL said:
			
		

> Snap hehehe.
> 
> Yeah thats a good place to start... where Richkid said




Yep! same time, same place Wayne, just snuck in! 

This is the link to the ASX Warrants page. 

btw 2006 is the 15th anniversary of warrants trading on the ASX- the first ever warrant was a call on Boral. 
http://www.asx.com.au/investor/warrants/index.htm


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## markrmau (31 March 2006)

If you are new to warrants, be careful of barrier warrants (I think also called turbo warrants) which disappear along with your money if the strike price is touched. If your not sure how barrier warrants work and how to value them, then stay away.


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## chemist (1 May 2006)

markrmau said:
			
		

> If you are new to warrants, be careful of barrier warrants (I think also called turbo warrants) which disappear along with your money if the strike price is touched. If your not sure how barrier warrants work and how to value them, then stay away.




Actually that advice applies to any trading instrument.

cheers,
Chemist


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