Warrant, also known as "warrant" or "warrant", is called Warren in English, so it is also commonly known as "wolun" in Hong Kong. In the securities market, warrants refer to financial derivatives with maturity date, exercise price or other execution conditions. According to the definition of American Stock Exchange, warrant refers to the option to buy or sell the underlying assets at the agreed price and time (or at the corresponding price within a series of periods stipulated in the warrant agreement). It belongs to one of the ways of securities investment, which is different from stock investment. It has leverage effect and controls the equivalent financial assets. You can invest ten times less than the stock and enjoy the profit and loss brought by the rise and fall of the same underlying assets. In addition, warrants also have proprietary features such as premium, discount, exercise price and leverage ratio.

Broadly speaking, warrants usually refer to a kind of securities issued by an issuer with specific conditions. From the legal point of view, the warrant is essentially a right contract. After paying premium call warrants, investors have the right to subscribe for or sell a certain number of underlying assets (such as stocks, stock indexes, gold, foreign exchange or commodities) at an agreed price (exercise price) at a certain period or date. The transaction of warrants is actually a kind of option transaction. Like all options, the warrant holder gets a right, not an obligation, after paying royalties, and it is up to the warrant holder to decide whether to exercise it. The warrant issuer shall have the obligation to provide performance when the warrant holder puts forward the performance requirements according to the regulations, and shall not refuse. In short, the warrant is a right: investors can subscribe or sell the underlying assets of the warrant at an agreed price (regardless of the market price of the underlying assets) at an agreed period or maturity date.

Warrants can usually be issued by both listed companies and specialized investment banks. The rights represented by warrants include two options: buying (bullish) and selling (bearish) the underlying assets. So sometimes the subscription card is generalized (including subscription card and put card), but more is just subscription card; In Hong Kong, it usually refers to covered warrants.