Introductory knowledge and strategies of Warrants & Callable Bull/Bear Contract (CBBC)
[Wo Lun Bull and Bear Classroom 1] What exactly is “Wo Lun”, which is often cued in Hong Kong dramas?
There is such a star trading product in the Hong Kong stock market. It often appears in financial Hong Kong dramas. I believe that many mooer are no stranger to it; it is the famous “Wo Lun.”
![There is such a star trading product in the Hong Kong stock market. It often appears in financial Hong Kong dramas. I believe that many mooer are no stranger to it; it is the famous “Wo Lun.” In fact, Wo Lun was introduced in the Hong Kong market as early as the 1990s, and it is a veritable “post-90s”. Wolun has always occupied an important position in Hong Kong market transactions. Taking Friday's transactions as an example, Wolun's total daily turnover reached 9.332 billion yuan, accounting for 7.19% of the total daily market turnover of 129.791 billion yuan, which reflects the popularity of Wolun transactions. Although Wo Lun is loved by Hong Kong stock investors, for most investors who have never participated in Wo Lun trading, what is Wo Lun? Questions such as how to trade can be confusing. Don't worry, today's Play Futubull and Earn will give you all the basic knowledge of the Science Wheel in detail. We'll start with the following three dimensions: 1. What is Wo Lun II. Common basic elements of Wollun 3. The appeal and risk of trading false rounds 1. What is Wo Lun Named after the homonym of the English word “warrants,” it is a type of warrant.[Trick][Trick] Currently, there are two main types of warrants, namely “subscription certificates” and “put warrants”. Specifically, a subscription certificate indicates that the holder has the right to purchase the relevant assets. When the price of the relevant asset rises, the value of the subscription certificate will theoretically increase accordingly. Generally, retail investors in Hong Kong would like to call it a “call round.” In contrast to a purchase warrant, a put warrant allows the holder to own...](https://nnqimage.futunn.com/825676376265343975.png/big?imageMogr2/ignore-error/1/format/webp)
In fact, Wo Lun was introduced in the Hong Kong market as early as the 1990s, and it is a veritable “post-90s”. Wolun has always occupied an important position in Hong Kong market transactions. Taking Friday's transactions as an example, Wolun's total daily turnover reached 9.332 billion yuan, accounting for 7.19% of the total daily market turnover of 129.791 billion yuan, which reflects the popularity of Wolun transactions.
![There is such a star trading product in the Hong Kong stock market. It often appears in financial Hong Kong dramas. I believe that many mooer are no stranger to it; it is the famous “Wo Lun.” In fact, Wo Lun was introduced in the Hong Kong market as early as the 1990s, and it is a veritable “post-90s”. Wolun has always occupied an important position in Hong Kong market transactions. Taking Friday's transactions as an example, Wolun's total daily turnover reached 9.332 billion yuan, accounting for 7.19% of the total daily market turnover of 129.791 billion yuan, which reflects the popularity of Wolun transactions. Although Wo Lun is loved by Hong Kong stock investors, for most investors who have never participated in Wo Lun trading, what is Wo Lun? Questions such as how to trade can be confusing. Don't worry, today's Play Futubull and Earn will give you all the basic knowledge of the Science Wheel in detail. We'll start with the following three dimensions: 1. What is Wo Lun II. Common basic elements of Wollun 3. The appeal and risk of trading false rounds 1. What is Wo Lun Named after the homonym of the English word “warrants,” it is a type of warrant.[Trick][Trick] Currently, there are two main types of warrants, namely “subscription certificates” and “put warrants”. Specifically, a subscription certificate indicates that the holder has the right to purchase the relevant assets. When the price of the relevant asset rises, the value of the subscription certificate will theoretically increase accordingly. Generally, retail investors in Hong Kong would like to call it a “call round.” In contrast to a purchase warrant, a put warrant allows the holder to own...](https://nnqimage.futunn.com/5480948191792900082.jpg/big?imageMogr2/ignore-error/1/format/webp)
Although Wo Lun is loved by Hong Kong stock investors, for most investors who have never participated in Wo Lun trading, what is Wo Lun? Questions such as how to trade can be confusing. Don't worry, today's Play Futubull and Earn will give you all the basic knowledge of the Science Wheel in detail. We'll start with the following three dimensions:
1. What is Wo Lun
1. What is Wo Lun
II. Common basic elements of Wollun
3. The appeal and risk of trading wowls
1. What is Wo Lun
Named after the homonym of the English word “warrants,” it is a type of warrant.
Currently, there are two main types of wo ships, which are”Subscription certificate” and”Put warrants”。
Specifically, the subscription certificateIt means that the holder has the right to purchase the relevant assets. When the price of the relevant assets rises, the value of the subscription certificate will also theoretically increase. Generally, retail investors in Hong Kong like to call it”Call wheel”。
Contrary to a subscription certificate,Put warrantsIt gives the holder the right to sell the relevant assets. When the price of the relevant asset falls, the value of the put warrant will also theoretically rise. Hong Kong retail investors usually call it”Put wheel”。
![There is such a star trading product in the Hong Kong stock market. It often appears in financial Hong Kong dramas. I believe that many mooer are no stranger to it; it is the famous “Wo Lun.” In fact, Wo Lun was introduced in the Hong Kong market as early as the 1990s, and it is a veritable “post-90s”. Wolun has always occupied an important position in Hong Kong market transactions. Taking Friday's transactions as an example, Wolun's total daily turnover reached 9.332 billion yuan, accounting for 7.19% of the total daily market turnover of 129.791 billion yuan, which reflects the popularity of Wolun transactions. Although Wo Lun is loved by Hong Kong stock investors, for most investors who have never participated in Wo Lun trading, what is Wo Lun? Questions such as how to trade can be confusing. Don't worry, today's Play Futubull and Earn will give you all the basic knowledge of the Science Wheel in detail. We'll start with the following three dimensions: 1. What is Wo Lun II. Common basic elements of Wollun 3. The appeal and risk of trading false rounds 1. What is Wo Lun Named after the homonym of the English word “warrants,” it is a type of warrant.[Trick][Trick] Currently, there are two main types of warrants, namely “subscription certificates” and “put warrants”. Specifically, a subscription certificate indicates that the holder has the right to purchase the relevant assets. When the price of the relevant asset rises, the value of the subscription certificate will theoretically increase accordingly. Generally, retail investors in Hong Kong would like to call it a “call round.” In contrast to a purchase warrant, a put warrant allows the holder to own...](https://nnqimage.futunn.com/8610998848197541163.png/big?imageMogr2/ignore-error/1/format/webp)
It is worth noting that holding a Wo Lun is actually equivalent to holding a virtual right. The reason why this kind of right is virtual is that neither the subscription certificate nor the put certificate are finally settled in physical form but in cash, and most Wolun investors also only use it as an investment tool to get the price difference, not really want to obtain rights. In this regard, there is still a clear difference between warrants and options.
II. Common basic elements of Wollun
After understanding the basic concept of Wolun, let's take a look at the common basic elements of Wolun, which mainly include the following 5 points:Respectively“strike price”, “share conversion ratio”, “effective leverage”, “share of street goods”, “break-even point”。
1.Exercise price: The exercise price represents the investor's right to buy or sell a specified amount of the underlying securities at this price at a specified time. If you purchased$UBTENCT@EC2201E (24177.HK)$ This wow means you have a virtual right to buy Tencent shares at a price of HK$550.5. When it comes to subscribing to Warrant, the other conditions are the same. The lower the exercise price, the greater the value of the Warrant, and the opposite is true for Warrant Lun.
2.Stock exchange ratio: Represents how many shares can be rotated for 1 share of the underlying securities. With$UBTENCT@EC2201E (24177.HK)$ The 100 share exchange ratio is an example. For every 100 shares of this type, you can exchange 1 share of the original share. Starting at 10,000 shares, that is, trading one lot$UBTENCT@EC2201E (24177.HK)$ Wo Lun is equivalent to having 100 shares of Tencent holding rights.
1.Exercise price: The exercise price represents the investor's right to buy or sell a specified amount of the underlying securities at this price at a specified time. If you purchased$UBTENCT@EC2201E (24177.HK)$ This wow means you have a virtual right to buy Tencent shares at a price of HK$550.5. When it comes to subscribing to Warrant, the other conditions are the same. The lower the exercise price, the greater the value of the Warrant, and the opposite is true for Warrant Lun.
2.Stock exchange ratio: Represents how many shares can be rotated for 1 share of the underlying securities. With$UBTENCT@EC2201E (24177.HK)$ The 100 share exchange ratio is an example. For every 100 shares of this type, you can exchange 1 share of the original share. Starting at 10,000 shares, that is, trading one lot$UBTENCT@EC2201E (24177.HK)$ Wo Lun is equivalent to having 100 shares of Tencent holding rights.
3.Effective leverage: That is, how much the theoretically tendered security has risen or fallen, and track the multiples of its rise and fall. For example, if Tencent rose 1% on the same day, and the effective leverage of 24177 was 13.28 times, then the price of 24177 should theoretically increase 13.28% on that day.
![There is such a star trading product in the Hong Kong stock market. It often appears in financial Hong Kong dramas. I believe that many mooer are no stranger to it; it is the famous “Wo Lun.” In fact, Wo Lun was introduced in the Hong Kong market as early as the 1990s, and it is a veritable “post-90s”. Wolun has always occupied an important position in Hong Kong market transactions. Taking Friday's transactions as an example, Wolun's total daily turnover reached 9.332 billion yuan, accounting for 7.19% of the total daily market turnover of 129.791 billion yuan, which reflects the popularity of Wolun transactions. Although Wo Lun is loved by Hong Kong stock investors, for most investors who have never participated in Wo Lun trading, what is Wo Lun? Questions such as how to trade can be confusing. Don't worry, today's Play Futubull and Earn will give you all the basic knowledge of the Science Wheel in detail. We'll start with the following three dimensions: 1. What is Wo Lun II. Common basic elements of Wollun 3. The appeal and risk of trading false rounds 1. What is Wo Lun Named after the homonym of the English word “warrants,” it is a type of warrant.[Trick][Trick] Currently, there are two main types of warrants, namely “subscription certificates” and “put warrants”. Specifically, a subscription certificate indicates that the holder has the right to purchase the relevant assets. When the price of the relevant asset rises, the value of the subscription certificate will theoretically increase accordingly. Generally, retail investors in Hong Kong would like to call it a “call round.” In contrast to a purchase warrant, a put warrant allows the holder to own...](https://nnqimage.futunn.com/5270742462661584590.jpg/big?imageMogr2/ignore-error/1/format/webp)
4.Proportion of street goods: This indicator measures the ratio of retail shareholder holdings to total circulation. The higher the share of street goods, the higher the degree of participation in the representative market. This ratio is very important. Many small-volume warrants have huge price differences, and often no one even takes over.
5.Strike and point, if retail investors buy it at a price of 0.052$UBTENCT@EC2201E (24177.HK)$ This Wo Lun, so on the day it comes to exercise, the theoretical cost of this Wo Lun should be the Wo Lun cost plus the exercise price, that is, 0.052*100+550.5 = HK$555.7. This price is the break-even point; only when the stock price exceeds this price can it actually be profitable.
As a simple example, Tencent's current stock price is HK$463.4. If retail trader Xiao A thinks Tencent will rise to HK$550.5 in January next year, then it can subscribe at a very low price$UBTENCT@EC2201E (24177.HK)$ If Tencent's stock price exceeds the exercise price of HK$550.5 after the expiration date, then UBS will use 13.28 times the effective leverage to pay the profit to Little A, but if it does not exceed this price, Little A will completely cool down the money to buy this Wo Lun.
3. The appeal and risk of trading wowls
After understanding the basic concept of Wolun, let's talk about why are so many Hong Kong stock investors obsessed with Wolun?
As a simple example, Tencent's current stock price is HK$463.4. If retail trader Xiao A thinks Tencent will rise to HK$550.5 in January next year, then it can subscribe at a very low price$UBTENCT@EC2201E (24177.HK)$ If Tencent's stock price exceeds the exercise price of HK$550.5 after the expiration date, then UBS will use 13.28 times the effective leverage to pay the profit to Little A, but if it does not exceed this price, Little A will completely cool down the money to buy this Wo Lun.
![There is such a star trading product in the Hong Kong stock market. It often appears in financial Hong Kong dramas. I believe that many mooer are no stranger to it; it is the famous “Wo Lun.” In fact, Wo Lun was introduced in the Hong Kong market as early as the 1990s, and it is a veritable “post-90s”. Wolun has always occupied an important position in Hong Kong market transactions. Taking Friday's transactions as an example, Wolun's total daily turnover reached 9.332 billion yuan, accounting for 7.19% of the total daily market turnover of 129.791 billion yuan, which reflects the popularity of Wolun transactions. Although Wo Lun is loved by Hong Kong stock investors, for most investors who have never participated in Wo Lun trading, what is Wo Lun? Questions such as how to trade can be confusing. Don't worry, today's Play Futubull and Earn will give you all the basic knowledge of the Science Wheel in detail. We'll start with the following three dimensions: 1. What is Wo Lun II. Common basic elements of Wollun 3. The appeal and risk of trading false rounds 1. What is Wo Lun Named after the homonym of the English word “warrants,” it is a type of warrant.[Trick][Trick] Currently, there are two main types of warrants, namely “subscription certificates” and “put warrants”. Specifically, a subscription certificate indicates that the holder has the right to purchase the relevant assets. When the price of the relevant asset rises, the value of the subscription certificate will theoretically increase accordingly. Generally, retail investors in Hong Kong would like to call it a “call round.” In contrast to a purchase warrant, a put warrant allows the holder to own...](https://nnqimage.futunn.com/8106090714018680624.png/big?imageMogr2/ignore-error/1/format/webp)
Generally speaking, high leverage+ perfectly explains the charm of Wollun. The benefits of playing well will roll in more and more, and it is easy to become rich overnight, but if you don't pay attention, you can even clear up the bag with profits.
Since Wolun is a highly risky trading product, trading Wolun is actually gambling with investment banks. Investment banks have an overwhelming advantage in pricing turbines. Facing strong “bookmakers,” we still recommend that all “newbies” to Wolun here:
Finally, I believe after reading the above content, everyone will have a basic understanding of Worun. Here at Amway, all mooer interested in Wollun pay attention to the topic recently initiated by Play to Earn with Niu Niu“In the Wollun Bull and Bear trade, you stepped on those pits”. There are some memorable experiences of mooer in the Wo Lun Bull and Bear trade. I believe it can help you to trade smoothly without taking detours in the process of getting started with Wolun.
Participate carefully and don't take heavy positions!!!
Participate carefully and don't take heavy positions!!!
Participate carefully and don't take heavy positions!!!
Finally, I believe after reading the above content, everyone will have a basic understanding of Worun. Here at Amway, all mooer interested in Wollun pay attention to the topic recently initiated by Play to Earn with Niu Niu“In the Wollun Bull and Bear trade, you stepped on those pits”. There are some memorable experiences of mooer in the Wo Lun Bull and Bear trade. I believe it can help you to trade smoothly without taking detours in the process of getting started with Wolun.
![There is such a star trading product in the Hong Kong stock market. It often appears in financial Hong Kong dramas. I believe that many mooer are no stranger to it; it is the famous “Wo Lun.” In fact, Wo Lun was introduced in the Hong Kong market as early as the 1990s, and it is a veritable “post-90s”. Wolun has always occupied an important position in Hong Kong market transactions. Taking Friday's transactions as an example, Wolun's total daily turnover reached 9.332 billion yuan, accounting for 7.19% of the total daily market turnover of 129.791 billion yuan, which reflects the popularity of Wolun transactions. Although Wo Lun is loved by Hong Kong stock investors, for most investors who have never participated in Wo Lun trading, what is Wo Lun? Questions such as how to trade can be confusing. Don't worry, today's Play Futubull and Earn will give you all the basic knowledge of the Science Wheel in detail. We'll start with the following three dimensions: 1. What is Wo Lun II. Common basic elements of Wollun 3. The appeal and risk of trading false rounds 1. What is Wo Lun Named after the homonym of the English word “warrants,” it is a type of warrant.[Trick][Trick] Currently, there are two main types of warrants, namely “subscription certificates” and “put warrants”. Specifically, a subscription certificate indicates that the holder has the right to purchase the relevant assets. When the price of the relevant asset rises, the value of the subscription certificate will theoretically increase accordingly. Generally, retail investors in Hong Kong would like to call it a “call round.” In contrast to a purchase warrant, a put warrant allows the holder to own...](https://nnqimage.futunn.com/7762517236167627233.jpg/big?imageMogr2/ignore-error/1/format/webp)
For example:
@奶茶的珍珠 in“No one is willing to stop when they lose money, then sit in the quagmire and wait to hit the target”Share:Don't buy unpopular woolun. The circulation volume is too poor; you can't sell it without a market price; in the end, cut the meat and sell it to the distributor at a bargain price.
@屯門爸飛突of“Do you know who the rivalry of the Wolong Bull Bear is?”Share:If you want to save time and effort, you can first find a suitable number for yourself at Futubull, then go to the publisher's website. There are usually simulators. As long as you enter the target time and price, you can estimate the estimated price of the wheel.
@奶茶的珍珠 in“No one is willing to stop when they lose money, then sit in the quagmire and wait to hit the target”Share:Don't buy unpopular woolun. The circulation volume is too poor; you can't sell it without a market price; in the end, cut the meat and sell it to the distributor at a bargain price.
@屯門爸飛突of“Do you know who the rivalry of the Wolong Bull Bear is?”Share:If you want to save time and effort, you can first find a suitable number for yourself at Futubull, then go to the publisher's website. There are usually simulators. As long as you enter the target time and price, you can estimate the estimated price of the wheel.
mooer who are interested in Wollun are welcome to read and learn on the topic!
![There is such a star trading product in the Hong Kong stock market. It often appears in financial Hong Kong dramas. I believe that many mooer are no stranger to it; it is the famous “Wo Lun.” In fact, Wo Lun was introduced in the Hong Kong market as early as the 1990s, and it is a veritable “post-90s”. Wolun has always occupied an important position in Hong Kong market transactions. Taking Friday's transactions as an example, Wolun's total daily turnover reached 9.332 billion yuan, accounting for 7.19% of the total daily market turnover of 129.791 billion yuan, which reflects the popularity of Wolun transactions. Although Wo Lun is loved by Hong Kong stock investors, for most investors who have never participated in Wo Lun trading, what is Wo Lun? Questions such as how to trade can be confusing. Don't worry, today's Play Futubull and Earn will give you all the basic knowledge of the Science Wheel in detail. We'll start with the following three dimensions: 1. What is Wo Lun II. Common basic elements of Wollun 3. The appeal and risk of trading false rounds 1. What is Wo Lun Named after the homonym of the English word “warrants,” it is a type of warrant.[Trick][Trick] Currently, there are two main types of warrants, namely “subscription certificates” and “put warrants”. Specifically, a subscription certificate indicates that the holder has the right to purchase the relevant assets. When the price of the relevant asset rises, the value of the subscription certificate will theoretically increase accordingly. Generally, retail investors in Hong Kong would like to call it a “call round.” In contrast to a purchase warrant, a put warrant allows the holder to own...](https://nnqimage.futunn.com/2935452707923161598.png/big?imageMogr2/ignore-error/1/format/webp)
Finally, if you have any questions or knowledge points you want to know about Wolun, you can leave comments in the comments section. We will share them with you one after another! In the next article we willContinuing to popularize science for everyone, along with “Wolun”, the “Bull and Bear Certificate”, which is also known as the “ultimate double star” in the Hong Kong stock derivatives industryIf you are mooer remember to keep following us.
regardFutubullto learn more about options/futures/warrants usage strategies and product trends.
Risk Disclaimer: The above content only represents the author's view. It does not represent any position or investment advice of Futu. Futu makes no representation or warranty.Read more
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