--- title: "Trade Warrants to unlock the market's full potential at a fraction of the cost" description: "A capital-efficient way to trade with capped risk and total market flexibility" keywords: "Longbridge, Longbridge Securities, Singapore brokerage, MAS regulated, Hong Kong stocks, U.S. stocks, Singapore stocks, ETFs, REITs, warrants, LongbridgeAI, commission-free trading, SGX, HKEX" canonical: https://longbridge.com/sg/en/trade-warrants.md locale: en region: sg alternates: zh-CN: https://longbridge.com/sg/zh-CN/trade-warrants.md zh-HK: https://longbridge.com/sg/zh-HK/trade-warrants.md type: FinancialService tags: - warrants - derivatives - leveraged-trading updated_at: 2026-06-09T10:29:05.790Z --- > A capital-efficient way to trade with capped risk and total market flexibility ## Navigation See: *** # Trade Warrants to unlock the market's full potential at a fraction of the cost ## 3 key benefits of Warrants ### Optimised capital efficiency Control more shares of your favorite stocks for a fraction of the price, freeing up capital for other opportunities. ### Strictly capped risk Unlike margin trading, your maximum potential loss is strictly limited to the initial premium you paid. ### Total market flexibility Stay active and profitable through Call Warrants when prices are rising and Put Warrants during market downturns. ## Warrant trading strategies ### Long call Buy Call Warrants when you expect a stock price to rise, capturing maximum price movement with limited capital risk. ### Long put Buy Put Warrants when you expect a market downturn and profit even when the market is red. ### Cash extraction Sell a portion of your physical stock holdings and replace them with an equivalent amount of Call Warrants to free up your capital. ### The protective hedge Hold your favorite stocks, but buy Put Warrants on the same stock to offset your losses if the market dips. ## Why trade Warrants with Longbridge? ### Lifetime $0 commission^ Maximize your returns with $0 commission^. Optimise your returns by eliminating high transactional costs on each trade you make. ### LongbridgeAI Filter market noise and complexities with your 24/7 intelligent analyst. Get instantly personalised summaries on trends, market shifts and more to make informed decisions. ### Cash Plus Earn additional returns on idle cash and dividends in your account, while maintaining instant liquidity to make your next trade. ^Other fees apply. [Start enjoying lifetime $0 commission^ today](https://longbridge.com/sg/en/download.md) ## Frequently asked questions ### Q: Is it truly a $0 commission^ to trade Warrants on Longbridge? A: Yes! Longbridge offers lifetime $0 commission^ for trading warrants. You only pay a competitive platform fee and prevailing third-party fees. This makes Longbridge one of the most cost-effective platforms in Singapore. ### Q: What are Warrants? A: A warrant is a financial instrument that gives you the right—but not the obligation—to buy (Call) or sell (Put) an underlying asset, such as a stock or index, at a pre-set price within a specific timeframe. A: Think of a warrant as a high-powered alternative to owning the actual stock. Instead of paying the full market price, you pay a small "premium" to capture the stock's price movements. ### Q: How do I trade Warrants? A: Trading warrants is as seamless as trading a stock, but with the added power of leverage. Whether you are looking to hedge your portfolio or amplify your market views on global indices and blue-chip stocks, you can trade them instantly during market hours through the Longbridge app. **Start your trading journey in 3 simple steps:** 1. **Register in Minutes:** Download the Longbridge app [here](https://longbridge.com/sg/en/download.md) and sign up using Singpass for instant and secure identity verification. 2. **Fund Your Account:** Transfer SGD instantly via DDA (Direct Debit Authorization), FAST bank transfer or via PayNow with no hidden deposit fees. 3. **Place Your First Trade:** Use LongbridgeAI to filter warrants by strike price, expiry, or underlying asset and tap "Buy"—all with $0 commission^. ### Q: How do Warrants differ from Stock Options? A: While both are derivatives, the key difference lies in the issuer. Options are standardized contracts traded on an exchange, while Warrants are issued by specific financial institutions (like major investment banks). On Longbridge, Warrants often offer a lower entry barrier and don't require a complex margin account, making them a more accessible "step up" for stock traders looking for leverage. ### Q: What happens if I hold a Warrant till its expiry date? A: Warrants have a finite lifespan. If a warrant is "In-The-Money" at expiry, it is typically settled in cash—meaning you receive the difference between the stock price and the strike price. If it is "Out-of-The-Money," it expires worthless. > **Pro Tip:** Most Longbridge traders sell their warrants before expiry to capture gains from price swings and avoid the "time decay" that happens in the final days. ### Q: Is there a "Margin Call" risk when trading Warrants? A: No. This is one of the biggest advantages of trading Warrants. Because you pay the full premium upfront, your risk is strictly capped at that amount. You can never lose more than your initial investment, and you will never receive a margin call, regardless of how the underlying stock performs. ### Q: How do I choose the "right" Warrant on the Longbridge app? A: Longbridge provides a Warrant Filter tool to help you navigate the thousands of available products. You can sort by: - **Effective Gearing:** How much the warrant price moves relative to the stock. - **Expiry Date:** To match your trading timeframe. - **Moneyness:** How close the current stock price is to the strike price. - **Sensitivity:** This tells you how many "ticks" the stock must move for the warrant price to change, helping you pick the most responsive trades. ^Other fees apply. ## Related Pages * [Invest in Singapore stocks to open your gateway to ASEAN and beyond](https://longbridge.com/sg/en/invest-sg-stocks.md) * [Invest in US, HK or SG ETFs to gain exposure across multiple industries](https://longbridge.com/sg/en/invest-etfs.md) * [Invest in Hong Kong stocks to unlock one of Asia's top financial markets](https://longbridge.com/sg/en/invest-hk-stocks.md) * [Invest in REITs to boost your passive income](https://longbridge.com/sg/en/invest-reits.md) * [Invest](https://longbridge.com/sg/en/invest.md) * [Invest — Products](https://longbridge.com/sg/en/invest/products.md) * [Download](https://longbridge.com/sg/en/download.md)