38 index-type ELWs based on KOSPI 200
230 stock-type ELWs tied to Samsung Electronics, SK hynix, Naver and others
Korea Investment & Securities announced Tuesday the listing of 268 new equity-linked warrants (ELW).
The newly listed products consist of 38 index-type ELWs based on KOSPI 200 and 230 stock-type ELWs tied to individual stocks including Samsung Electronics, SK hynix, Naver and Hyundai Engineering & Construction.
An ELW is a product that grants the holder the right to buy or sell an individual stock or stock index at a predetermined price on the expiration date — essentially a warrant linked to equity.
Investors who expect the underlying asset to rise can buy call ELWs, while those anticipating a decline can opt for put ELWs, allowing for a range of strategies depending on market direction.
The product can be used to profit in both rising and falling markets, and its leverage effect allows investors to pursue larger returns with a relatively small outlay.
However, if the underlying asset moves against expectations, investors can lose up to 100 percent of their principal at expiration, and caution is advised.
Trading ELWs requires completing an investment-profile assessment and a mandatory investor education course. New customers must also meet a minimum deposit requirement of 15 million won ($11,100).
Korea Investment & Securities ranks first in the Korea Exchange ELW market in both trading value and number of listed products.
The firm also operates a dedicated ELW website and a KakaoTalk channel called "TRUE ELW" to provide investors with useful market information.
jiyun@heraldcorp.com
