Warrants trade similarly to stocks, but they have specific rules you should know before investing. Here's how to buy them, sell them, and what to expect in each scenario.
How to buy a warrant
To buy a warrant, search for the asset by name or ticker in the app. Keep in mind that warrant tickers generally end in "W" (e.g. CRESW, AUUDW). Once you find it, the process is similar to any stock:
- Go to the detail screen and tap Buy.
- Set the amount you want to invest.
- Before confirming, you'll see a warning with the instrument's specific risks. Read it before continuing.
- Confirm the order. Your portfolio will update automatically once it executes.
How to sell a warrant
Keep in mind that on Bitso, warrants can only be sold, not exercised, so selling before it expires is your only way to recover value.
To sell, go to your portfolio, select the warrant, and tap Sell. The available order type depends on the warrant's status at that moment.
When the warrant has normal liquidity, you can use a market order, which executes at the best price available at that moment. When the warrant is in an illiquid state, the only option is a limit order: you set the minimum price you're willing to sell at, and the order only executes if the market reaches that value.
What happens if my warrant has no buyers?
When a warrant is illiquid, it can be difficult or impossible to sell it before it expires. If you place a limit order and no buyer is found at the price you set, the order cancels automatically and the warrant expires worthless.
In this scenario there's no refund: if the warrant expires without being sold, the invested capital is lost.
What happens when a warrant expires?
When a warrant reaches its expiration date with no value, the asset is automatically removed from your portfolio as part of a corporate action called Worthless Removal. You'll get a notification in the app about the event, and you can check the details in your Activity section.
Keep in mind the invested amount isn't refunded. If the warrant expired worthless, the invested capital is lost.