Post by
Bagofhammers on Mar 19, 2018 6:59pm
2 Clueless about warrants
Thought I would pull this out for developmentally challenged.
13. Are warrants suitable for every trader or investor?Because warrants can be very illiquid some are not suitable for people wanting to just trade. Warrants involve risk and they have to be monitored so they don't end up expiring worthless. Some warrants involve a lot of patience but those with the patience to hold will usually be well rewarded.
14. Why do warrants that aren't 'in the money' become worth less as less as it gets closer to the expiry date?Because time left is factored into the fair market value, warrants that don't expire for a few years can be worth a lot more as the farther away from the expiry the more time can be the factor making the warrants more valuable. As it gets closer to the expiry date time plays less and less of a factor in valuing the warrants.
Comment by
JohnnyAppleweed on Mar 19, 2018 7:56pm
Those look SCARY, i could never trade them. Now others may but.... good luck on your trading/investing.