Warrants

Warrants

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A type of derivative that is they derive their value from another thing. They allow you to gain
exposure to an underlying investment without actually owning the investment eg. some warrants give
the owner the right to buy or sell the underlying investment (e.g. a share) at a set price according to the
terms of the warrant. Some warrants have higher risk/return profiles than others that offer lower risk
features such as capital guarantees.