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Structured Warrant Glossary
Every core term used across this site's guides and calculator, defined in plain English. See a term in action on the screener or the pricing calculator.
- Gearing
- The multiple by which the warrant's price moves relative to the underlying — a measure of leverage that shows how much bigger the exposure is versus buying the underlying share or index outright.
- Effective Gearing
- Gearing adjusted for delta — the more precise estimate of how much a warrant's price actually moves for every 1% move in the underlying. This is the number traders watch when sizing leveraged trading positions.
- Delta
- The sensitivity of the warrant price to a small change in the underlying price. A call warrant's delta ranges 0 to 1; a put warrant's delta ranges -1 to 0.
- Implied Volatility
- The market's expectation of future price swings in the underlying, backed out from the warrant's traded price using a Black-Scholes-style model.
- Moneyness
- Whether a warrant is in-the-money, at-the-money, or out-of-the-money relative to the strike (exercise) price of the underlying.
- Time Decay & Maturity
- As a warrant approaches its maturity date, its time value erodes — accelerating in the final weeks before expiry. Maturity/expiry dates for Bursa-listed structured warrants typically range 3 months to 5 years.
- Exercise / Conversion Ratio
- How many warrants are needed to convert into one unit of the underlying share or index — directly affects the warrant's price and gearing.
- Settlement
- Most Bursa Malaysia and HKEX structured warrants are cash-settled: on expiry, in-the-money warrants pay out the cash difference automatically, no exercise action needed.
- Break-even
- The underlying price at expiry at which a warrant holder neither profits nor loses — strike price plus (for calls) or minus (for puts) the warrant premium paid, adjusted for the conversion ratio.
Ready to see these terms applied? Try the what are structured warrants guide or the pricing calculator.