Warrants and Options

A warrant is a security giving the purchaser the right to buy a stock, metal, or other commodity for a specific price any time until a specified date. Warrants are good only until the exercise date; after that they are worthless. Warrants do not pay dividends. They give the investor the opportunity to purchase the stock, metal, or commodity for less than might be quoted during that period, but they usually are offered at above-market price. They are exchange-traded securities. The price fluctuates much like stock prices, but the cost to purchase warrants can be considerably less than those traded high during the exercise period. The object is to gain leverage. The longer the period is to exercise it, the better chance you ' ll have to make a profit or sell the warrant itself, possibly also at a profit.

An option, also known as a call, is a contract granting a right, not an obligation, to purchase or sell assets during a specific period and at a prearranged price. Options frequently are associated with stocks, but they also serve to provide a hedge in currency trading, futures, and commodities. The price fluctuates based on dynamics like those in warrants. But unlike a warrant, which is issued by a company, an option is a security issued by a market trader and is good for a shorter period than a warrant. Options can be traded with the assistance of your Swiss banker or Swiss brokerage firm.

Jack Crooks of Crooks Currencies is an expert in the currency options game. He will share with you how to apply the high profit potential of options to the immense opportunities in the Forex market. Learn more about his currency option service at www.crookscurrencies.com .

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