Chi-X warrants now available on nabtrade
We are pleased to announce that nabtrade customers can now access nearly 600 additional warrants following our agreement with Chi-X Australia to facilitate Chi-X’s warrant trading.
If warrant trading is already enabled on your account, you can transact ASX and Chi-X warrants immediately. However, before trading Chi-X warrants, it's important that you review:
If you’d like to enable warrants trading, log in and go to Admin > click Permissions > Apply for warrants trading and complete the steps.
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Gain exposure to the profit potential of an asset for only a small upfront investment via warrants.
Only nabtrade offers free real-time streaming ASX prices to all clients. No price quote refresh required.
Most warrants offer a degree of gearing and give the warrant holder the right but not the obligation to buy, sell or participate in the performance of an underlying investment, before or on the expiry date.
Being a derivative security, warrants obtain their value from other assets such as shares and exchange-traded products (ETP), a basket of different securities, a share price index, debt, currencies, or commodities.
By purchasing warrants, investors have the potential to magnify their capital gains (and losses) depending on the performance of the underlying asset(s) and potentially increase their portfolio income while investing a smaller amount.
There are more than 3000 warrants that trade on the ASX and offer exposure to investments including shares and exchange-traded products (ETP), a basket of different securities, a share price index, debt, currencies, or commodities.
Certain types of warrants are eligible for use by and popular among Self-Managed Superannuation Funds (SMSFs) seeking to gear into the market.
^ Investment Trends 2015 Second Half Australia Online Broking Report, based on a survey of 13,910 investors.
The main reason investors purchase warrants is to gain exposure to an asset without having to pay the full amount of capital for that underlying investment upfront. Warrants may also be used for strategies including speculating on price movements, boosting portfolio diversification, increasing income and hedging portfolio risk.
Broadly, there are two types of warrants:
|Investment Warrants||Trading Warrants|
Why are they used?
Borrow to invest in shares and increase exposure to potential capital growth, dividends and franking credits.
Why are they used?
Trade the rise or fall of shares, indices, commodities and currencies.
Investment time-frame: Medium to long term.
Investment time-frame: Short to Medium term.
Key benefits: Leverage and no margin calls.
Key benefits: Leverage and no margin calls
Used by: Self-managed Super Funds and individual investors.
Used by: Shorter-term traders and some individual investors.
nabtrade provides Warrants educational material and links to resources at the following locations.
Products - Warrants - click here
Understanding Warrants - PDF - 665KB
Warrants fact sheet - Market Making - PDF - 111KB
- Warrants & Instalments online course - click here
Deloitte - Taxation of Warrants - PDF - 361KB
nabtrade YouTube channel - click here
nabtrade’s public Insights & Ideas section - click here
* Warrant trades up to and including $5,000 are $14.95 (incl GST) per online trade. For trades over $5,000, brokerage is $19.95 (incl GST) per online trade (up to and including $20,000). Over this amount, brokerage of 0.11% of trade value per online trade applies. For more details on fees and charges refer to the nabtrade Financial Services Guide.