Elizabeth Tian, Director - Citi Markets starts her presentation by explaining that warrants can also be used to protect or trade falling prices over a range of different products including shares, indices, currencies and commodities.
Liz explains that MINI Short warrants provide leveraged exposure to falling prices on a one for one basis, meaning if the price falls by 1c in the case of a share the MINI short warrant will increase by 1c. As with all MINI warrants there is a strike price which is adjusted for financing charges, and a stop loss level. Liz reminds traders need to be aware of the stop loss level to ensure they know when their position will be closed.
Liz then takes viewers through an example....
