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Risk Warning The value of investments can fall as well as rise and any income from them is not guaranteed and you may get back less than you invested. Past performance is not a guide to future performance.
This investment may use derivatives such as Futures, Options and Swaps and therefore expose you to counterparty risk: be sure you understand the nature of the investment and where the final risk exposure lies.
These investments are more appropriate for experienced investors: we will ask you to complete an appropriateness assessment before trading them.
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.
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.
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.
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+2) through your account in the normal way.
What's available >
Risers and Fallers >
Covered warrant trading hours
The trading hours for most covered warrants are 08:00 to 16:30. However, there are a select number of covered warrants, issued by Royal Bank of Scotland (RBS), which can be traded from 08:00 to 19:00.
Any RBS warrants based on the following underlying investments are available for late trading by phone.
Dow Jones Industrial Average
Dow Jones EuroStoxx 50
Hang Seng China Enterprise
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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Learn more about SG Turbos >
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 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.
Learn about Royal Bank of Scotland covered warrants through video tutorials, factsheets and product guides.