The essence of warrants reflects the contractual relationship between the issuer and the holder. After paying a certain amount of money to the warrant issuer, the holder obtains a right from the issuer. This right enables the holder to buy/sell a certain amount of assets from the warrant issuer at an agreed price on a specific date or within a specific period in the future.

The holder obtains a right, not a responsibility, and has the right to decide whether to perform the contract, while the issuer has only the obligation to be executed. Therefore, in order to obtain this right, investors must pay a certain price (royalties). The difference between warrants (in fact, all options) and forwards or futures is that the former holder is not a responsibility, but a right, while the latter holder is responsible for executing the sales contract signed by both parties, that is, the relevant assets must be traded at the specified price and the specified future time.

From the above definition, we can easily see that warrants can be divided into call warrants and put warrants according to the exercise direction of rights. Call warrants belong to "call options" and put warrants belong to "put options". Now give an example of warrants.

The investor bought 65,438+00,000 warrants, indicating that he can buy 65,438+00,000 SSE 50ETF at a price of 0.78 yuan on any trading day from June to September. Because the warrants are settled in cash, investors will not be required to pay ETF when exercising, but will pay according to the ETF price and exercise price at the time of exercising. Generally speaking, when the SSE 50ETF is less than 0.78 yuan, investors will not put forward the right to exercise; Only when the SSE 50ETF is higher than 0.78 yuan, investors will put forward the right to exercise.

This shows that it is different from ordinary stocks and funds.