Covered Warrants
With Covered Warrants you can speculate on the price movements of a variety of underlying assets - including shares, indices and commodities - giving you the opportunity to trade profitably, but the opportunity for loss, whatever the markets are doing.
What are Covered Warrants?
Covered Warrants give you the right – but not the obligation to buy or sell a share at a specific price and a specific time. You can speculate that the price will fall – going short – or that the price will rise – going long. Key features include:
- Unlimited upside potential with limited risk, you can lose no more than you invest
- Highly leveraged so small deposit gains large exposure
- Experienced investors can be used of investment strategies such as hedging
Although they present an opportunity to make significant profits, the geared nature of Covered Warrants means that a relatively small movement in price of the underlying security will result in a much larger movement in the value of the Warrant, in either direction.
Why choose Barclays for your Covered Warrants?
Barclays has partnered with the leading issuers to bring you a wide range of Covered Warrants that allow you to invest in underlying assets that would not be easily available otherwise. You can place ‘Call’ or ‘Put’ Warrants depending whether you believe the value of the underlying security is going to rise or fall over the period of the Warrant, and you can trade the Warrant any time until the end of the term. With Barclays you can:
- Expand your investment portfolio in exciting new directions
- Get direct access to all LSE listed issuers of Covered Warrants
- Place orders at any time with online using Quote & Deal, At Best or Limit Orders.
How to trade in Covered Warrants
First of all, you’ll need to open an account. You can trade via most of our Trading Accounts and our SIPP account. Unfortunately, you can’t trade Covered Warrants as part of an ISA.
Our Covered Warrants in detail
Learn about the issuers: Societe Generale and Dresdner Kleinwort Wasserstein
The information you need is in our Frequently Asked Questions section.
Visit our Education Centre for comprehensive information on Covered Warrants and how they work.
Important Information
Before trading you should fully understand the nature of Covered Warrants and the extent of their exposure to risk, indicating your understanding. If this is the first time you have traded in warrants, covered warrants or Listed CFDs you will be asked to complete an appropriateness assessment.
Please ensure you understand the difference between Covered Warrants & Listed CFDs. Covered Warrants will run to maturity unless you close them. Listed CFDs will be closed out if they fall below the close out threshold set by the issuer.
