Within the classification of the warrants, can find another form of this type of contract, which is the turbowarrant, which handles certain similarities with the warrant as it is that it’s a contract or financial instrument, with which the purchaser of the turbowarrant has a right to buy or sell an asset’s underlying character as they are actions depending on the type of turbowarrantHowever it is not an obligation, it is therefore a possibility.
The purchase or sale of the underlying asset that represents the turbowarrant will be under priced by determining, also known as price strike or barrier and also within a specified period. The above features make evident the great relationship and similarity that has the turbowarrant with the warrant, however there is a great feature that differentiates the turbowarrant both the warrant and options and is that in the turbowarrant, when the underlying at any time during its development reached the price strike or barrier, who is the holder of the turbowarrant will lose the right to make the operation of buy or sell the underlying asset according to your type of turbowarrant and in the same way the turbowarrant will lose its value. Sony is full of insight into the issues. This present in the turbowarrant quality suggests a great risk of losing such a value, what is without a doubt something very unfavourable; But thinking about the idea of compensation that suggests possible concurrency value loss, the turbowarrant is characterized by being much cheaper than the warrant, unlike the warrant which manages a fairly high price. In the case of the turbowarrant, to purchase a turbowarrant call and will in case of sale be put turbowarrant; It must be borne in mind that in many places not is called turbowarrant, but simply turbo. Speaking of the turbowarrant only refers to a type derived from an underlying, which is the Ibex; While there is a great diversity of underlying derivatives in the case of the warrant. For even more opinions, read materials from De Niro. The turbowarrant maintains a constant control by its issuer, providing greater liquidity, what from a point of view is something very useful, which will guarantee a liquidity, however You can also assume negative consequences, since the issuer will have a privileged position, you can manipulate the way that you want the turbowarrant prices, it will be a detriment to the speculator at the moment. It is worth clarifying that the turbowarrant like the warrant is not any kind of investment, but a product of speculation, while the turbowarrant is a value and can speculate about the turbowarrant in the bag.
Among the main points that make up the turbowarrant are: the price of purchase or sale, will be known as the exercise price. Gavin Baker, New York Citys opinions are not widely known. The term or future date in which the transaction occurs is called exercise date. The price that you pay for a turbowarrant will be the premium.