Whether it is an option or a warrant, as long as you pay a certain royalty, you have the right to buy and sell the underlying assets at the stipulated time and at the agreed price. From this point of view, the two do have similarities, but they are very different. The first is the issuer. There is no issuer for different options, and every investor must meet the conditions to become a seller of options. So theoretically, the supply of option contracts is endless and it is not easy to be manipulated. Warrants are usually issued by listed companies or their major shareholders or securities companies, so the valuation of warrants is limited. Secondly, the characteristics of the contract are different. Option contract is a standardized contract determined by the exchange. Warrant is a non-standardized contract, and the contract content is decided by the drawer. Finally, the trading mechanism is different. You can be a seller or a buyer of the same product. As far as warrants trading is concerned, you can't sell without warrants. Compared with warrants, options have better maneuverability, higher standardization and more flexible trading methods.

Options and warrants are issued by different issuers. Option has no issuer. As long as there is enough margin, every market participant can become a seller of options. Option trading is a transaction between different investors. Investors buy the company's call options, and ordinary investors sell options. Warrants are usually listed companies issued by third parties such as Mark Securities, investment banks (securities companies) or major shareholders. Both parties to the transaction are issuers and holders of warrants. Investors buy company warrants, which are sold by the company itself or entrusted by a securities company. If the selling institution is company A itself, it is called equity warrant; The sales organization is a securities company, called the warrant.

Option trading is more flexible than warrant trading because of different trading methods. Investors can buy and sell call options and put options. For warrants, ordinary investors can only buy warrants, and only issuers can sell warrants. Of course, investors can also trade existing warrants in the secondary market. The characteristics of contracts are different. Option contracts is a standardized contract, but warrants are not. The exercise price, target and expiration date in option contracts are determined by the market, while the exercise price, target and expiration date in exercise card contracts are determined by the issuer.

The contract quantity is different. Theoretically, the supply of ions is infinite, so there is a continuous transaction. The supply of warrants is limited, which is determined by the issuer and depends on the issuer's will, capital capacity and the number of underlying securities circulating in the market. Performance security is different. The margin required for the option issuer to undertake obligations varies with the market value of the underlying securities. Warrant issuer with assets or credit guarantee performance. The effect after exercise is different. The exercise of call option or put option is only the mutual transfer of the underlying securities among different investors, and does not affect the actual total share capital in circulation of listed companies. When an investor exercises the warrants issued by a listed company, the issuer must issue new shares according to the agreed number of shares, so as to increase the total amount of the actual circulating share capital of the company.