DERIVATIVE WARRANTS 衍生權證. Derivative warrants are an instrument that gives an investor the right to “buy” or “sell” an underlying asset at a pre-set price prior to a specified expiry date. At expiry, settlement is usually made in cash rather than a purchase or sale of the underlying asset. Derivative warrants can be issued over a range of assets, including stocks, stock indices, currencies, commodities, or a basket of securities. They are generally divided into two types: calls and puts. Holders of call warrants have the right, but not obligation, to purchase from the issuer a give amount of the underlying asset at a predetermined price (also known as the exercise price) within a certain time period. Conversely, holders of put warrants have the right, but not obligation, to sell to the issuer a given amount of the underlying asset at a predetermined price within a certain time period.衍生權證投資者有權在指定期間以預定價格「購入」或「出售」相關資產。到期時，衍生權證一般以現金作交收，而不涉及相關資產的實貨買賣。衍生權證的相關資產種類繁多，計有股票、股票指數、貨幣、商品或一籃子的證券等等。它們一般分作兩類：認購權證及認沽權證。認購權證的持有人有權(但沒有責任)在某段期間以預定價格(稱為「行使價」)向發行商購入特定數量的相關資產。相反，認沽權證的持有人有權(但沒有責任)在某段期間以預定價格向發行商沽售特定數量的相關資產。
DERIVATIVE WARRANTS 衍生權證. Derivative warrants were an instrument that gives an investor the right to “buy” or “sell” an underlying asset at a pre-set price prior to a specified expiry date. They may be bought and sold prior to their expiry in the market. In Hong Kong derivative warrants are usually settled in cash when they exercised at expiry. 衍生權證投資者有權在指定期間以預定價格「購入」及「出售」相關資產。衍生權證可於到期前在香港交易所現貨市場買入或沽出。到期時，衍生權證一般以現金作交收，而不牽涉及相關資產的實貨買賣。 Derivative warrants are issued by third parties such as financial institutions and are generally divided into calls and puts. Holders of call warrants have the rights, but not obligation, to purchase from the warrant issuer a given amount of the underlying asset at a predetermined price (also known as the exercise price) within a certain time period. Conversely, holders of put warrants have the right, but not obligation, to sell to warrant issuer a given amount of the underlying asset at a predetermined price within a certain time period. Derivative warrants in Hong Kong normally have an initial life of six months to two years and when trading in the market each derivative warrant is likely to have a unique expiry date. 衍生權證是由第三者發行，例如金融機構。衍生權證一般分作兩類: 認購權證和認沽權證。認購權證的持有人有權(但沒有責任) 在某段期間以預定價格(稱為「行使價」) 向發行商購入特定數量的相關資產。相反，認沽權證的持有人有權(但沒有責任) 在某段期間以預定價格向發行商沽售特定數量的相關資產。在香港買賣的衍生權證的有效期通常由六個月至兩年不等，每隻在香港掛牌的衍生權證均有其指定的到期日。 The time value of a derivative warrant decreases over time. All things being equal, the value of a derivative warrant will decrease over time as it approaches its expiry date. Derivative warrants are not principal protected and the price of derivative warrants may fall in value as rapidly as they may rise and investors may not be able to get back the principal and may loss all the investment. 衍生權證價格會隨時間而遞減。假若其他情況不變，衍生權證愈接近到期日，價值會愈低。衍生權證須面對投資風險，並且可能不保本，其價值可快速改變。投資者須留意，衍生權證的價值可以跌至零，屆時投資的資金將會盡失。
