Derivatives
Deal in Traditional Warrants, Covered Warrants and other securitised derivatives listed on the London Stock Exchange.
Warrants, Covered Warrants, Turbos and Structured Products are deemed to be complex instruments and are best suited to more experienced investors. This is due to the leveraged nature of these products, which means that profits or losses are magnified. As such, special risks apply. These risks are documented in a formal risk warning notice. For your protection, and to satisfy the regulations, it is important that you read and understand the contents of this warning and that you complete our appropriateness assessment before we can permit you to deal in complex instruments.
When logged-in to your account you will automatically be asked to complete the appropriateness assessment before trading Complex Instruments for the first time. Alternatively, you can complete a printed copy of the form using the link below, and then return it to us.
Download the Risk Warning notice >
When trading these instruments, you should also consider the credit rating of the issuer as any default by that issuer may result in the loss of part or all of your investment.
Traditional Warrants
Warrants give you the right (though not an obligation) to purchase shares at a fixed price for a specified period of time. A traded instrument, the price of the warrant will vary depending on the price of the underlying investment, the exercise price and the time left to maturity.
Covered Warrants
Covered Warrants are issued by large financial institutions, principally Société Générale and Royal Bank of Scotland, and give you the right to buy or sell existing shares at a fixed price by a certain date. 'Covered' relates to the requirement of the issuer to hold (or hedge) a sufficient amount of the underlying asset to cover the issue. However, Covered Warrants are overwhelmingly cash rather than physically settled so investors need never take delivery of the asset, as a result they are exempt from stamp duty. Covered Warrants automatically exercise at expiry, are traded on the stock exchange, and are CREST settled (T+3) through your account in the normal way.
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Covered warrant trading hours
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Turbos (formerly known as Listed CFDs)
Turbos (formerly known as Listed CFDs) combine the flexibility of a CFD (Contract for Difference) with the price transparency of a London Stock Exchange listing. Most importantly, a Turbo embeds a Knock Out Barrier at no extra cost, which means you can never lose more than your initial margin payment, no matter how badly markets move against you.
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Structured products
Issued by a range of investment companies such as RBS, Barclays Capital and Société Generalé, Listed Structured products use different financial instruments such as futures and options to create investments that provide you with a level of exposure to stock market gains coupled with guarantees to limit losses or to lock in gains as the market rises.
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Covered Warrant Strategies
Covered Warrants are traditionally used by investors in an attempt to amplify profits. However, they can also be used in a defensive manner. Warrants specialist, Andrew McHattie has produced a guide with the Royal Bank of Scotland, which details a number of strategies where covered warrants may be used to deliver returns.
RBS Academy
Learn about Royal Bank of Scotland covered warrants through video tutorials, factsheets and product guides.
Research
- Market data & news
For the latest company news and information across the equity market. Fund Manager commentaries, economic and political news. - Research & Education
Investment selection tools for shares, funds, and covered warrants; comprehensive company factsheets; charts and watchlist. Plus guides and information to help enhance your investment skills, from an introduction to the stock market, to investment strategies. - Customer only research
Free access to Analysts' Consensus view, Directors' Dealings plus technical analysis from Investors Intelligence.
This can be found in Market data or News & information.
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