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Covered warrants (CW) - financial products with the same trading method as the underlying securities but with many unique benefits that attract the attention of today's investors. Find out with PHS What is a Warrant? and Overview of warrant products when officially launched in Vietnam market so as not to miss the opportunity to invest in this attractive product!

So “What is the concept of Covered Warrants (CWs) or Warrants?”


Covered Warrants (CW), often referred to as warrants for short, are securities with secured assets issued by securities companies. The holder has the right to buy (call warrants) or sell (sell warrants) the underlying security to the issuer of that warrant at a predetermined price, at or before a specified date. fixed in the future.

In other words, warrants are financial products that can help you earn high profits from changes in the underlying stock price but only with much lower capital.

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Overview of the warrant market in Vietnam

Covered warrants (CWs) are a popular financial product in the world and were officially traded on HOSE on June 28, 2019 - marking a historic milestone in the Vietnamese market. The first issuer has 7 securities companies licensed to offer 9 warrant codes.

The CW market will operate with the first product being call warrants (with the right to buy shares at a specified price at a specified time in the future), European style (settled at expiration), with a fixed period. term from 3-24 months and be paid in cash.

In addition, according to HoSE's announcement, during the initial issuance, there were 26 stock codes eligible to be the underlying securities for CW products, including CII, CTD, DHG, DPM, EIB, FPT, GMD, HDB, HPG, MBB, MSN, MWG, NVL, PNJ, REE, ROS, SBT, SSI, STB, TCB, VHM, VIC, VJC, VNM, VPB and VRE.

The presence of warrants helps securities companies have more revenue from new products and diversify financial options for investors. With outstanding features such as investment capital much lower than the underlying securities, no margin and very high leverage, warrants are increasingly attracting the attention of a large number of Vietnamese investors.