Trading Basics
Warrant
The right to buy new shares at a set price in a company at a future point in time. Similar to an option which gives similar right but over existing shares.
Other Trading Basics
Counterparty
You need at least two parties in a financial transaction, they are counterparties.
Collateral
The resources put up by the trader to enter a trade.
Requested by the counterparty and normally in the form of cash but sometimes other liquid assets like shares.
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