No the real problem is IB especially CIMB manipulate the matrix to manipulate the bid price and quantity on a daily basis depending on how many of that call warrant they have sold.
For instance it can be so generous with the bid price and quantity when it cannot sell any of the warrant.
But once it have sold a fair amount of that warrant it is different story. The bid price and quantity will be lower when mother is at the same price.
bid and ask prices are set by preset parameters the matrix are all lies - this is very true... playing warrants you have to abide with their game rules...
I believe no counter in bursa can gain 100% within a day, but the power of warrant allows you to do that. The manipulative abilities on IB's side is the hidden cost you pay... On the bright side, you get high leverage ability with little money, no stamp duty to be paid. Use the tools wisely not every market is a warrant's market
SC & Bursa are well aware of this... you have to understand the IB's have an edge as this product were made for them to hedge, not for you to buy a million warrants and run 0.1 higher. Similarly you made a bet on them they also allowed to make a bet on you. This is the markets. You want fairness maybe Genting more fair than the markets
I agree call warrants should be ban.call warrants is a tool that enrich the investment banks only.instead of helping the poor,this only enrich the rich
An equation also provided by CIMB : change in theoretical warrant price = change in mother price x Delta / conversion ratio. Since c46 has higher Delta and lower conversion ratio, c46 should have more volatility and should flip faster than c47
apolloang I agree call warrants should be ban.call warrants is a tool that enrich the investment banks only.instead of helping the poor,this only enrich the rich................same with casinos and Genting...but still got Genting......hahahaha.
Bukan saja waran yg menipu sebenarnya tapi seluruh sistem operasi di bursa cuma mereka ada lesen utk menipu.isunya ialah adakah kita boleh melepasi skill menipu mereka supaya kita berpeluang buat duit.jika rugi bermaksud skill mereka lebih tinggi dan terima sajalah sebab semua pihak termasuk sc,bursa dan banker bekerjasana ttg bagaimana cara utk buat duit dgn cara menipu pelabur
The IV and Delta is more applicable IF the warrant is in the money. In this case of C46 and C47 are way way below the exercise price. The movement therefore cannot follow closely to the theorical IV and Delta, but more of willing buyer.
When someone bought C46 sometime back, I am sure it was much cheaper than C47, why didnt complain then?
The premium will decrease as the warrant expiry date nears. So do not expect the warrant to go back to the same price when the mother share recovers.
Holding on to maturity as suggested by the writer, again only applicable if the warrant is in the money.
Call warrant is just another instument of the financial market to increase market activity and volume. Knowing the movement of the mother share and the timing of buying in and selling of warrant is crucial if one wants to make money out of warrants.
Lastly, be prepared to lose all the money when buying in warrant, else stay away.
the above statement is also true... out of the money means the market maker can do anything to you like lowering bid. The rule is to provide liquidity, thats all!
Yes..I kena many times d playing this call warrants..most of the time, lose money..how could they ask us to buy warrants but at the end of the day, all of our money kena "songlap" cow2 by this bankers,sc n.bursa..retailers always the victim...best thing,stay away from this warrants ..
everything is turning into a scam in msia now. bursa,money game,4d....all swindle retails money until broke and only the rich cronies getting richer and richer.only fools vote for the crooks
Call warrant is just another instument of the financial market to increase market activity and volume. Knowing the movement of the mother share and the timing of buying in and selling of warrant is crucial if one wants to make money out of warrants
Mother movement is not the issue the issue is IB changing the parameter constantly to secure profit for itself.
Shifting goalpost again again as necessary.
If you buy big enough you will have the feeling you are being tracked by the IB and very likely can only sell to other players as the IB lowered its bid.
increase market activity,mother stock can split or give bonus to improve liquidty and also benefit to the shareholders. call warrants being issue shareholders and company got nothing.only IB will benefit from nothing
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Short
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Posted by Short > 2018-04-19 11:37 | Report Abuse
No the real problem is IB especially CIMB manipulate the matrix to manipulate the bid price and quantity on a daily basis depending on how many of that call warrant they have sold.
For instance it can be so generous with the bid price and quantity when it cannot sell any of the warrant.
But once it have sold a fair amount of that warrant it is different story. The bid price and quantity will be lower when mother is at the same price.
Matrix 100% is being manipulated.