Korea Investment & Securities announced on January 15 that it will newly list 682 Equity-Linked Warrants (ELWs). The listed products include 292 index-type ELWs based on the KOSPI 200 and 390 stock-type ELWs based on individual stocks such as Samsung Electronics, SK Hynix, Shinhan Financial Group, and Hyundai Motor Company.
An ELW is a financial product that allows investors to trade the right to buy or sell individual stocks or stock indices 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, thereby creating 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 number of listed products in the Korea Exchange ELW market.
Meanwhile, to trade ELWs, investors are required to complete a risk assessment and pre-investor education. In addition, new customers must meet a minimum basic deposit requirement of 15 million won. Further details can be found on the Korea Investment & Securities ELW website and the KakaoTalk channel 'TRUE ELW'.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
