Currency Warrants

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Dictionary Says

Definition of 'Currency Warrants'

A financial instrument used to hedge currency risk or speculate on currency fluctuations in foreign exchange markets. A currency warrant, like other option derivatives, gets its value from the underlying exchange rate - the warrant's value goes up and down with fluctuations in the underlying exchange rate. Also, currency warrants are priced the same way as currency options and allows holders the right to exchange an amount of one currency into another currency at a specified exchange rate before or on a specified date.
Investopedia Says

Investopedia explains 'Currency Warrants'

Typically, warrants are used to manage risk if you have exposure to a certain currency and wish to hedge against potential losses. The other common use of currency warrants is to speculate on the movement of exchange rates and earn a profit if your view is correct. The leverage in currency warrants allows users to gain more exposure to exchange rate movements.

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'Currency Warrants'

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    ... these settle in US dollars. Currency Warrants – Based upon the performance
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    ... number of shares, but it can also represent a commodity, index or a currency ... The
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    ... ADR questions, for example that dividends are paid in the foreign currency, that
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    ... hit before putting the trader in a profitable position that warrants just reward ...
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  • Series 63 Study Guide - Securities - Securities Exemptions ...

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    ... subscription rights on warrants or an option (or similar derivative security) whose
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    ... Like so many companies, Coach is seeing pressure from currency, materials, shipping,
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    ... want to use them in our article: What Are Warrants?) Automakers Are ... compensation
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  • Series 7 Study Guide - Equities - Other Equities | Investopedia

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    ... Act of 1934; 9.12 Over the Counter (OTC) Markets; 9.13 The Currency Market; ... Warrants
    are certificates entitling a bondholder to buy other securities, at some ...

  • Series 65 Study Guide - Alternative Investments - Derivative ...

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    ... Swaps - The exchange of one security, currency or interest rate for another. ... Warrants -
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  • Active Trading Frequently Asked Questions | Investopedia

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    ... How did currency trader John Rusnak hide $691 million in losses before being caught
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