Warrants cover a wide spectrum of risk profiles, investment objectives and likely returns.
In broad terms, warrants can be viewed as trading products or investment products. Some may fall into both categories. Trading warrants are relatively short-dated and are generally traded frequently. Investors in trading products may be looking for short-term leveraged exposure to the underlying instrument. The investor may have no intention of ever trading the underlying instrument, but may be looking to profit from short term movements in the value of the instrument.