A warrant may be deliverable or cash settled. Deliverable warrants are settled by a transfer of the underlying instrument. Cash settled warrants are settled by a cash payment by the warrant issuer to the holder. Some deliverable warrants may also provide for cash settlement in certain circumstances. The features listed above form part of most warrants.
Some warrants also have their own unique features.
A barrier level is a defined level that causes some event to occur. It is nominated by the issuer before the warrant is issued, and can be set above or below the exercise price of the warrant. The consequences of triggering a barrier level will be specified in the offering circular. Some warrants have their upside potential capped at a certain level. A cap level is fixed by the issuer at the time the warrant is issued.