To The Moon

As part of Tiger Trade Experience 2025, Tiger Brokers is shining a spotlight on one of our key partners , Macquarie Warrants Singapore. Together, we share a common mission: equipping investors with smarter, more flexible tools to navigate fast-moving markets. In this feature, we break down how Macquarie plays an active role in Singapore’s structured warrants landscape, and provides an overview of how warrants work and the key considerations for investors who may be exploring this product class.

Warrants Explained: how investors can turbocharge exposures with high leverage, lower capital, no margin calls

Keen to limit your capital outlay but still want exposure to short-term upside?

Or are you concerned about a pullback in overvalued stocks?

If this is you, you may want to consider adding structured warrants to your trading portfolio!

What are structured warrants?

Definition: Structured warrants are instruments issued by financial institutions, tracking the movements of an underlying asset, such as a share or an index.

Call Warrant: For investors who believe the underlying share or index will rise in price; moves in line with the underlying.

Put Warrant: For those who expect the underlying to fall; moves in the opposite direction and can be used to hedge or profit from declines in price.

Trading: SGX-listed warrants are bought and sold through brokerages using a 4-digit warrant code. The full list is available via Macquarie’s Warrant Search tool.

Why trade warrants?

Leverage: Also known as the gearing effect. Warrants offer some of the highest gearing amongst listed leveraged products in Singapore.

Lower capital outlay: Warrants typically cost a fraction of the underlying share price (often under $0.20), requiring less capital.

Limited loss: Maximum loss is capped at the initial investment, with no margin calls

How to choose a warrant?

1. What is your view on the underlying? Set clear entry, exit, and cut-loss levels based on your underlying view.

2. Decide on holding period. Warrants are short-term instruments subject to time decay, which erodes value over time. Use Macquarie’s Warrant Calculator to help you to estimate your maximum holding period by days or the Warrant Selector to estimate by weeks.

3. Gearing Level: Select a warrant with a gearing level that matches your risk appetite. Effective gearing shows how much the warrant moves relative to the underlying. For example, a warrant with an effective gearing of 10x would have moved 10% for every 1% move in the underlying.. The warrant’s effective gearing also helps estimate the effective stock exposure in the underlying that a holder gains through the warrant.

Using the same example of a warrant with 10x effective gearing, investors with a $100,000 stock exposure would thus need one-tenth equivalent of capital outlay in the warrant i.e. $10,000. The Exposure Simulator calculates the warrant investment amount for you based on your intended stock exposure.

4. Spread: Choose warrants with tight bid-offer spreads for cost efficiency. The Live Matrix helps identify these.

Before trading, read and comprehend the features, terms and risks to assess if warrants are suitable for you.

Warrants versus other leveraged instruments

There are some key differences between warrants and other leveraged instruments. As explained in a Dollars&Sense article published on 1 Nov 2025:

Compared to options

Cost: Warrants are generally cheaper. Many are priced below 20 cents, and some are even under 2 cents, making them accessible to retail traders.

Margin: Warrants are fully paid products with no margin calls, while options can be traded on margin.

Liquidity: Warrants appoint a market maker to ensure two-way pricing, allowing investors to buy and sell more easily.

Compared to CFDs and DLCs

CFDs are margin products — you borrow to trade, incur financing charges, and face margin calls if the market moves against you.

DLCs offer fixed leverage (e.g. 3x, 5x, 7x) and have an airbag mechanism that resets prices if the underlying moves too sharply. They come with costs like the gap premium and management fee.

Warrants, provide higher leverage (up to 30x), require full cash payment, have no financing costs and are impacted by implied volatility.

Learn more about warrants at www.warrants.com.sg/home/edu or ring Macquarie Warrants Singapore at 6601 0289 for a chat!

Keen to find out more about structured warrants? Join us for Tiger Trade Experience at Plaza Singapura Atrium, from 22 - 23 November, 10am to 10pm.

Get ready for an unforgettable experience, explore 6 immersive zones packed with interactive games, take a personality quiz to uncover your investing style, and score exclusive Tiger merchandise*. Plus, enjoy upsized rewards worth up to S$1,751*, join our hourly lucky draws* (featuring an iPhone 17 Pro and AirPods Pro), and snap Insta-worthy photos at our vibrant booths.

Register here: https://tigr.link/TTX2025

This article is done in collaboration with Macquarie Warrants Singapore, a sponsor of Tiger Trade Experience 2025.

Disclaimer: Warrants can be volatile instruments and may be subject to considerable fluctuations in value. The price of Warrants may fall in value as rapidly as it may rise due to, including but not limited to, variations in the frequency and magnitude of the changes in the price of underlying share or index, dividends and interest rate, the time remaining to expiry and the creditworthiness of MBL. Therefore Warrants run the risk of expiring and becoming worthless resulting in a total loss of your investment. Where past performance is referred to, it is not indicative of future performance. In preparing the information contained herein, Macquarie did not take into account the investment objective, financial situation and particular needs of the reader. Before making an investment decision on the basis of the information contained herein, you should consult, to the extent necessary, your own independent, competent, legal, financial and other professional advisers, to ensure that any decision you make is suitable for you with regard to your investment needs, objectives and financial circumstances. MBL makes no representation nor can it give any assurance as to the liquidity in the trading of Warrants as MCSSPL, the Designated Market Maker, may be the only person quoting prices in the Warrants. In deciding whether to acquire or continue to hold an investment, you should obtain the base listing document and the relevant supplemental listing document from us and consider its content carefully before making any decision about this financial product. Copies of the listing documents may be obtained from the offices of MCSSPL at 9 Straits View #21-07 Marina One West Tower Singapore 018937 and on www.warrants.com.sg

*T&Cs apply. Tiger Brokers is not permitted to provide financial advice or recommendations on investment products. The products mentioned is provided solely for general information and sponsorship acknowledgment. Nothing herein shall be construed as an offer, recommendation, or solicitation to purchase or invest in any financial product. Not financial advice. Investment involves risk. This advertisement has not been reviewed by the Monetary Authority of Singapore.