Warrants & Certificates

Warrants are an exiting way of stock exchange trading with a limited amount of invested capital. You invest in the change of value for a share, an index or other assets without bying the actual underlying asset. This is possible due to the leverage inherent in warrants, where percentage movements in the price of the underlying are amplified. Exchange traded warrants are as easy to trade as shares. Warrants have been traded on the Exchange since 1995 and thanks to the market making in the warrants the liquidity is very high.

At NASDAQ OMX Nordic there are many warrants with an exciting variation of underlying assets to choose from. Warrants are divided into three types to make it easier to find and compare different warrants.

“Plain vanilla” is the heading of simple buy or sell warrants with shares, indices or currencies as underlying.

“Knock outs” are warrants that terminate and cease to exist, if the relevant price of the underlying asset touches a predetermined barrier. On the expiry date the value of the knock out warrant is the difference in price of the underlying and the strike price in the warrant.

“Exotics” are warrants with a more complex structure.