What are the benefits of investing in warrants and bull/bear contracts?-FTFT International Securities and Futures Official Website - Hong Kong Stock Account Opening

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What are the benefits of investing in warrants and bull/bear contracts?

1、 Leverage effect, improving the efficiency of fund utilization

Wolun and bull/bear contracts can amplify the price changes of related assets. Investors can increase the return performance of their investment portfolio by investing a small amount of funds in warrants or bull/bear contracts, tracking the market performance of related assets, and then investing the remaining funds in other purposes.

2、 Call and sell, grasp the market bull bear switch

Wolves and bull/bear contracts are available for investors who are bullish or bearish on the market to provide corresponding investment tools (call/put warrants, bull/bear contracts). Investors can flexibly use two types of products to capture market fluctuations or break through trends.

3、 Lock interest hedging to implement your trading strategy

In our actual investment, we may need to lock in profits or hedge the risk of holding stocks after the stock rises, which can be achieved through warrants/bull/bear contracts.

4、 Maximum loss controllable

The biggest loss in buying and selling warrants and bull/bear contracts is only the initial investment capital, and there is no need to replenish positions or be charged other fees. Compared to futures products, the risk is lower.

5、 Low funding threshold

6、 Buying and selling warrants and bull/bear contracts does not require payment of stamp duty, and the price per lot can be as low as several hundred yuan, which is lower than buying one lot of underlying stocks. If investors have limited capital, warrants and bull/bear contracts can provide them with more investment opportunities, such as Tencent Holdings (0700. HK).

7、 Cash settlement, simple buying and selling

Wolun and bull/bear contracts are settled in cash, and can generally be bought and sold through stock accounts, similar to stock trading; And option trading requires opening a margin account separately, with relatively complicated procedures.

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