Warrants vs. Options

vola · Post by **vola** » Wed Apr 29, 2015 7:10 pm

Thanks for that. The difference is huge even if you account or FX

so basically they do a good margin playing the options vs. the warrant and hedging the FX.

In general they state that the only margin they get is the bid ask spread (1 cent in general on the warrant). Do they to do some delta hedge etc as well?

gustyshinobi · Post by **gustyshinobi** » Sat May 02, 2015 1:50 am

i had once a similar idea , buy the warrant sell the option and vice versa .but still there are practical limitations and problems .

as mentioned before ,you can not short warrants. most warrants at least in germany, are intented for retail investors , and are traded at the scoach .

i monitored certain certificates and warrants and noticed , that not only the bid/ask spreaded widend significant but also trading halted all together for several hours or days ( call it a volatility break i call it cheating ) for no apperant reason (taking into account normal inventory management of the mm) . most times "technical problems" were given as explanation .

vola · Post by **vola** » Mon May 04, 2015 9:13 am

That with the market disruption is well known. e.g. the underlying I was reffering to jumped by 6% and today they have maintanance (UBS ${L_SMILIES_SMILE}$ )

These are the cost trading directly with UBS or any shit exchnages like Scoach