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THE ABC OF... |
Warrants 5 tips for warrants traders CS journalists
1. You should only buy warrants on stocks where you have a strong opinion as to which direction its shares are heading, and think that the shift - either higher or lower - will be significant.
2. You can buy and sell warrants before their expiry date, or "exercise price," via the Australian Stock Exchange (ASX).
3. Looking for ways to cut your tax bill? Instalment warrants let individuals prepay up to 12 months interest before 30 June for a tax deduction on their current year's tax return.
4. Instalment warrants are one of the few ways an investor with a self-managed super fund can use borrowings in the fund.
5. Self-managed super funds can't take advantage of the tax deductions gleaned from pre-paying up to 12 months interest upfront, but can only claim one month's interest for the current year.
To check out the range of warrants brokers available go to our warrants comparison tables. Email to a friend
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