Structured Warrants are Specified Investment Products listed and traded on the exchange. They are structured and issued by financial institutions. These financial institutions also make the market for the warrants they issue. Warrants are leveraged products that have similar characteristics to options. Both products will have an expiry date, a strike price and a market price.
There are two different types of Warrants, a call warrant and a put warrant . The value of a Call warrant increases when then price of the underlying asset appreciates. Investors can use these warrants to make bullish bets on the underlying asset. Put warrants on the other hand decrease in value when the underlying asset appreciates and only increase when the asset depreciates. Purchasing a put warrant allows the investor to make bearish bets on the underlying asset thus making profit when the asset prices fall.