Introductory knowledge and strategies of Warrants & Callable Bull/Bear Contract (CBBC)
How is the word “miserable” in the Hong Kong stock market this year
Highlight at the beginning of the year, then continued to fall

$TENCENT (00700.HK)$ At one point after peaking at 773, it was close to a slump
$BABA-W (09988.HK)$ Hit a new low since listing in Hong Kong
$Hang Seng Index (800000.HK)$ A drop of more than 23% from a high at the beginning of the year
$BABA-W (09988.HK)$ Hit a new low since listing in Hong Kong
$Hang Seng Index (800000.HK)$ A drop of more than 23% from a high at the beginning of the year

After all, the beaten mooer still couldn't hold back. The poem went viral:
Persuade you to drink more than one glass of wine
Go to the bottom and be the biggest wrongdoer
Spring breeze and greenery on the south bank of the river
Who is speculating on Hong Kong stocks and who is done
I thought the decline from the beginning of the year to the end of the year was miserable enough
I can't imagine that there are more horrible people these days

As the saying goes: Asking Junneng has a lot of sorrow, just like a full stock of “Hang Seng Index”

OMG!!!
Remember we wrote in our previous post”What exactly is the “wobble” that is often cued in Hong Kong dramas” As I mentioned, this issue will share with you another Hong Kong stock derivatives “The Absolute Double Pride” — “Bull and Bear Securities.” Without further ado, this article will be more refined, mainly for you to talk about:
It plummeted 80.39% in one day. What the hell is the “Hang Seng Index”?
Remember we wrote in our previous post”What exactly is the “wobble” that is often cued in Hong Kong dramas” As I mentioned, this issue will share with you another Hong Kong stock derivatives “The Absolute Double Pride” — “Bull and Bear Securities.” Without further ado, this article will be more refined, mainly for you to talk about:
1. What is a bull-bear certificate
II. The difference between bulls and bears and warrants
Bull and bear securities are a structured product that reflects the performance of related assets. It is a leveraged investment tool。 As a simple example, if you are optimistic about the future trend of the Hang Seng Index, you can choose the Hang Seng Index bullish index, for example:$SG#HSI RC2406X (69327.HK)$ Conversely, if you are bearish on the future trend of the Hang Seng Index, you can choose a bear stock, for example:$UB#HSI RP2204D (55213.HK)$ 。
Since bulls and bears can track the performance of related assets without having to pay the full amount of actual assets purchased, bulls and bears also have a leveraging effect. If you go in the right direction, your profits will also double. Of course, if you misjudge the direction, losses will also soar accordingly.
So the question is, why should I choose a bull-bear certificate instead of a warring? Next, let's talk briefly about the differences between bullish and bearish certificates and warrants.

Overall, bull and bear securities are a more transparent investment tool than warolons, and they are not involvedExtruded Wavelength。
How to understand extension amplitude?Increased volatility is the market's expectation of the volatility of the underlying asset for some time to come。 As a simple example, if you are optimistic about the future trend of the Hang Seng Index and think that the volatility of the Hang Seng Index will increase, then at this time the Hang Seng IndexCall wheelIt would be a better choice. If you are also optimistic about the Hang Seng Index but think the Hang Seng Index's trend is relatively flat, then this isHang Seng Index bull certificateWould be a better choice.
In addition, there is another important distinction between bulls and bears, which isBull and bear securities have a mandatory recycling mechanism。 This mechanism allows banks to immediately recycle the relevant bull-bear securities if the price of the relevant asset hits the recovery price before the expiration date of the bull-bear securities. In other words, this bullish and bearish stock will expire early and immediately stop trading on the market, and the original expiration date will no longer be valid.
The compulsory recycling price is also commonly known as the “target price”. If you buy bull-and-bear securities, you must focus on the mandatory recycling price. Otherwise, if you don't pay attention to the sharp fluctuations in the stock price of the underlying stock, there is a risk of being “targeted” every minute

That's all for today's popular science about the Bull and Bear Certificate. If you still want to learn more about the Bull and Bear Certificate, you can study in the Futubull and Bear Classroom.

In addition,FutubullInitiated【Awarded Interaction】All mooer are welcome to leave comments and share in the comments section of this article: You are optimistic about the Bull and Bear Certificate.
2. Alibaba's rise and support$HS#ALIBARP2209B (54790.HK)$ ;
For example:
1. Tencent will face a backlash from the Jedi,$JP#TENCTRC2210A (52092.HK)$;2. Alibaba's rise and support$HS#ALIBARP2209B (54790.HK)$ ;
mooer who comment and get the top three likes will get88 pointsThe reward.



mooer, hurry up and participate!!



【Deadline】
12/3 16:00 p.m.


Finally, in the last two articles, we have simply popularized the science of Wolun and the Bull and Bear Certificate. We hope that through the study of derivatives, everyone will be aware of more investment options. In the future, Futubull will continue to share knowledge about derivatives with everyone.
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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