Quote Originally Posted by JBmurc View Post
I did for a short period of time did some CWA warrant trading .......high risk to reward as spreads where large ....my helpful CWA broker certainly made it easy for me to invest and blow cash..and in the end after blowing 8k AUD we both agreed the Warrant market was really taylormade for the BIG 100k+ orders where their spreads where far closer ....I always rememeber the term "Time value" and even if I called a move correct the time value would eat any profits and leverage my losses ....personal I hate CFD,Futures,Warrants.... only cause I have been burnt too many times..... Much rather trade ords , fixed date opts , and ETF's
No worries, I understand where you are coming from. Although most of the Citiwarrants have market makers and there is only a 2 cent spread. Ie in my WOWKOP buy the spread was 245 247 and I bought at 247. But if its not for you its not for you. I am in no way involved with Citi, just was unsure if you knew about the products. The thing is with BEAR and Beta products etc there is still a spread that you need to take. I guess to avoid the spread (or impact on trading) its best to take a longer term view and stick with it rather than try to day trade the warrants etc as that is just a losing strategy. You are correct on the time value bit. It does eat into your profits... thats the price we pay for the leverage provided