Korea Investment & Securities announced on December 17 that it will newly list 488 Equity-Linked Warrants (ELWs). The newly listed ELWs include 155 index-type ELWs based on the KOSPI200 as the underlying asset and 333 stock-type ELWs based on individual stocks such as Samsung Electronics, SK Hynix, Korea Electric Power Corporation, and Alteogen.
An ELW is a product that allows investors to trade the right to buy or sell an individual stock or stock index at a predetermined price on the expiration date. If an investor expects the underlying asset to rise, they can purchase a call ELW; if they expect it to fall, they can purchase a put ELW, thus providing opportunities for profit regardless of overall market conditions. However, if the price of the underlying asset does not move in the anticipated direction, up to 100% of the principal may be lost at maturity.
Korea Investment & Securities currently ranks first in both trading volume and the number of listed products in the Korea Exchange's ELW market.
Meanwhile, to trade ELWs, investors must complete an investment propensity assessment and pre-investor education. In addition, new customers are required to maintain a minimum basic deposit of 15 million won. Further details can be found on the dedicated ELW website of Korea Investment & Securities and the KakaoTalk channel "TRUE ELW."
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