or to say that one is short and the other is long

The significance of warrants is that they can be used to buy stocks at the agreed price at the agreed time

This is very similar to futures

If futures are applied, it is easy to understand

If a person has soybeans in his hand, Then he certainly hopes that the higher the price of soybeans is, the better it will be for him < P > But if a person wants to buy soybeans, then he hopes that the lower the price of soybeans is, the cheaper he can buy < P > Put warrants require you to sell your stocks at the agreed price when trading. Then the higher the price on the face of the warrant, the better for you. Otherwise, it's the opposite

that's the basic principle. .

I wrote an article before. .

if you are patient, you can have a look. .

About warrants

Two days ago, there was a news that the Shanghai and Shenzhen Stock Exchanges launched warrants, but it is estimated that the guy who wrote the article himself was not very clear, and the content of several hundred words was completely unintelligible. I have no choice but to go online and pull this management method down. The following is what I feel after reading it.

It is said that warrants are not a new concept, which I believe. Anyway, financial derivatives have been developed in foreign securities markets for almost a century, and nothing can be created by innovation. In my opinion, if warrants are given a more familiar name, it is futures, or rather, it is a small game of making stocks into goods for option trading. As soon as this concept is confirmed, the futures concepts such as hedging, short selling, small and broad, and leverage effect will flash out immediately.

after a closer look at the relevant regulations, it is even more certain that this warrant is just a disguised futures with a vest. Of course, China people's unique caution and stability are still reflected in this "method". If we only look at the short-term effect, the influence of this new financial product is extremely limited.

the reason is that: firstly, it is put forward as a scheme of share-trading reform, which more embodies the sinister intention of major shareholders to use "hedging" (borrowing the concept of futures here, the same below) to protect their own interests, and at the same time, it also contains the evil intention of continuing to go public at favorable opportunities in order to move according to the market situation. After all, it is not a financial product, but only a tool;

Secondly, the current warrant management is relatively strict. It is embodied in Article 1 of the Measures that "the warrants applying for listing in this Exchange shall meet the following conditions: (1) the agreed warrant category, exercise price, duration, exercise date, exercise settlement method, exercise proportion and other factors; (2) No less than 5 million warrants for listing; (3) The number of investors holding more than 1, warrants shall not be less than 1; (4) It has been in existence for more than 6 months and less than 24 months since the date of listing; (5) The issuer has provided a performance guarantee that complies with the provisions of Article 11 of these Measures. Judging from the above regulations, the warrant issuers that can meet the conditions in Shanghai and Shenzhen stock markets are at least big-name blue-chip stocks, and the number of stocks on this plate is limited. Accordingly, even if warrants are issued, it is more difficult to manipulate and control their ups and downs.

finally, it may take quite a long time to learn and accept warrants trading after it is open to all shareholders. This conclusion may be biased, or it may underestimate the IQ and learning enthusiasm of China people. But at least my parents' generation seems to be more difficult to learn. I used words and examples that I thought were quite easy to understand, plus metaphors, but they still seemed to have a little knowledge ... If I conducted a random survey on the stock exchange, I believe my parents are not the least receptive. In this case, warrants may turn into a game for a few people, so it is not unexpected that the tragedy of the futures market will reappear.