To: Kpainfish who wrote (3439 ) 10/24/2006 12:19:28 AM From: Mario :-) Respond to of 30224 < Why does one buy warrants and how does one buy warrants and should one buy warrants especially if they don't know what they are doing (me)? > Why: Because of leverage. If stock will go up say 30%, warrant may go 60, 80% or more... Ditto for other direction How: shold be the same way as regular stocks. Ticker is a little different. But some brokers will not let you buy them (Interactive Brokers), or you have to call broker representative (Ameritrade) Dont know what they are doing: Generally, warrants are tougher because of leverage and expiration (yes warrants have expiration day as options) Now, there is general recipe, but remember, just general: Warrats can have few months of life to up to 5 years. You want those with some life still left in them, say at least three years. So you did your DD on your mining company and you know it will go up 50% from here. It is no brainer. OK, if you are so sure, then buy (if warrant exist) warrant - with few years of life. If stock will go up, warrant will go even higher. You will make bigger profit with the same investment. But, if stock will go down.... So you don't plan to exercise warrants one day, you are just looking for leveraged profit. Now, this are just general guideline. There are formulas and calculations, how to figure out fair or under valued price of warrant... More from someone else with more experience.... This links can't hurt:canada.com This one is even better (but outdated - I newer know, how to find current version, browse web page to find it, or someone else may post current link):smartinvestment.ca Check out these articles:preciousmetalswarrants.com