A warrant is a financial instrument that provides traders with access to gain exposure to a variety of underlying assets, such as shares.

There are a number of different types of Warrants which can be used to suit a variety of trading and investment strategies.

Each warrant has a set of features that defines its characteristics.  These features are non standardised, varying between warrant types, and are tailored to meet the needs of different types of investors. Some of the features offered by warrants are:

• entitlement to the full dividends and franking credits paid on the underlying share
• ability to pay a portion of a share's value upfront without the obligation to repay the balance
• capital guarantees over the issue price of the warrant.

For each warrant a set of terms and conditions are outlined in the disclosure document. You can obtain a copy of a disclosure document from your adviser, the warrant issuer (or their web site) or from the ASX web site when you obtain a warrant price.

Before trading warrants, First Prudential Markets insists that you read the ASX produced brochure called Understanding Warrants. This will help you to appreciate and understand the risks associated with derivative trading.

For further information please visit the Warrants section on the ASX website.