Video: Is Buying and Selling Wheels a Zero sum Game Media source: Sina Finance

Some investors asked whether buying and selling a wheel is a "zero sum game", that is, if a wheel investor loses money, the issuer will make money? This is a misunderstanding. The relationship between the warrant investors and the issuer is actually a partnership.

We take the share subscription certificate as an example. When the issuer sells the subscription certificate to investors in the market, it will hedge the sold subscription certificate and buy the corresponding shares or related products. Assuming other factors remain unchanged, when the positive shares rise at a later time, the price of the subscription certificate held by the investors will rise, and the shares held by the issuer will also record an increase, which hedges the profits made by the investors on the subscription certificate.

Therefore, the issuer provides the warrants to meet the needs of investors who want to be big and small. However, investors sometimes lack a good grasp of the risk of warrants.

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