Invest in warrants, learn all the details

This financial product is one of the ones most used by skilled investors

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.

As we explained, it is a complex investment product that allows the undertaking of highly advanced investment strategies, such as leveraging and positions (upwards or downwards). These products can give high returns, but they are also high-risk: up to 100% of your investment is at risk, which is why their positions have to be constantly watched.

What basic strategy do you advise? Not to invest solely in warrants, but to have a mixed warrant-share strategy. That way, you use the warrants as “insurance” and not as your main investment product. How do you do this? Let's go in at a more advanced level: if you are interested in this product, we recommend you consult all the information we place at your disposal or you can go to one of the free courses we offer during the year in different parts of Spain. You will receive two hours of training to help you get to know their characteristics, what coverage they offer and how they are treated for tax purposes.