Warrants are commonly found in the portfolios of expert investors, as they can offer high returns. However, although warrants are available to anyone, it is essential for investors to know how they work or receive advice from an expert financial adviser, as these are complex investment products.
In very simple terms, warrants consist of acquiring the possibility to buy or sell specific securities on a specific date. Meaning, you secure the option, not the obligation, to sell shares from your investment portfolio or buy shares of interest to you on a specific day. Warrants are issued on shares, indexes, currencies, etc. To acquire the right, the buyer must pay a premium. Liquidation will be exclusively by the differences.