Last Saturday's "Kenanga Warrants Workshop: Oil & Gas" was a blast. Thought we'd share some of the Q&A for your knowledge.

Q1 : Why are there lesser or even no warrants on KLSE giants like Nestle & DLady compared to other stocks?
A : We issue SW based on market demand. We have issued warrants on heavyweights like Nestle, F&N, KLK & PetDag. Current heavyweights are BAT-CK & PBBANK-C22.
You may request for warrants from me if you wish!

Q2 : Many warrants to a counter, how to choose?
A : First, we recommend high Effective Gearing warrants for Medium-term traders (to maximize on live leverage). Second, we recommend highly Sensitivity warrants for intra-day and short-term traders. Third, we recommend warrants with sufficient time to expiry & from a trustworthy Issuer. That's how to choose.

Q3 : Is warrant trading of shariah compliant stocks also shariah compliant?
A: No.

Q4 : In what conditions will a Market-Maker stop offering liquidity for the Structured Warrant?
A : As liquidity provider, the minimum quantity provided is 1,000 units of Structured Warrants. Reasons may include suspension of underlying, low inventory or less than 5% inventory, Issuer's bid price is below RM0.005 or market conditions.
Refer to Base Prospectus (Section 5.2) - https://www.nagawarrants.com/base-prospectus

Q5. Is it advisable to average up or down on a Warrant?
A: Warrants are a leveraged product, so it magnifies an underlying's gains or losses.
If you are thinking of averaging up, it means you are on the right side of the trade & riding an uptrend.
If you are thinking of averaging down, it means you are on the wrong side of the trade. Like I mentioned, you need to have very tight cut loss for warrants! So cut loss, then only re-enter. Avoid averaging down.

Q6 : What is the USP of Kenanga vis-a-vis the myriad of competitors? Especially if you benchmark against other aggressive Issuers?
A: I've answered this question before, if anyone remembers it you may buy me lunch.

Q7 : Is your Market-maker mechanism monitored by a dealer or algorithm?
A : Our Market-Making system is fully-automated and monitored by the trading team.

***

Get the news first on Telegram. Its free.

Telegram app: @KenangaWarrants 

Official website:  www.NagaWarrants.com