As with any investment product that offers the potential for profit, there is a corresponding potential for loss. The relevant Product Disclosure Statement details key risks associated with investing in warrants. These include, but are not limited to:
Warrants may decrease in value at a greater rate than an investment in the underlying shares
Warrants are a speculative investment
If a stop loss is reached, a warrant will automatically terminate and investors may receive significantly less than their original investment or may expire worthless.
Warrants are subject to counterparty risk, which is the ability of the issuer to fulfil its obligations to you as stated in the PDS.
You should consider your own objectives, financial situation and needs and obtain professional advice if necessary before deciding to invest in warrants. Derivative products such as Warrants can be complex and may not be suitable for some investors. Before purchasing a Warrant you should obtain the Product Disclosure Statement and consider the Statement carefully before making any decision.