Warrant is a kind of derivative securities, which is issued by financial institutions that issue warrants, allowing its holders to buy or sell certain underlying assets at a specific price within a specific time. The price of warrants depends on the price and volatility of the underlying assets. If the underlying asset price rises, the warrant price will also rise.
Futures is a standardized contract that allows buyers and sellers to deliver basic assets at a specific price on a specific date in the future. The price of futures depends on factors such as market supply and demand and expected price changes. If the market expects the underlying asset price to rise, the futures price will also rise.
Although warrants and futures are traded in the options market, their trading methods, settlement methods, risk and return characteristics are different. Therefore, before trading warrants or futures, we need to understand their differences and choose the appropriate trading tools according to our investment objectives and risk tolerance.