Leveraged market exposure

MINI trading warrants (MINIs) provide the potential for a high return for a relatively small capital investment by providing leveraged exposure to shares, indices, currencies and commodities.
With MINIs you can trade in the rise and fall of markets for a fraction of the underlying asset price, without having to own them outright. You'll never be exposed to margining and your maximum possible loss is no greater than your initial outlay.
MINIs are leveraged trading warrants - MINI Longs offer exposure to rising markets, while MINI Shorts offer exposure to falling markets and can be used to hedge existing positions. For active traders, MINIs are simple to trade through your CommSec Trading Account.

Benefits

Profit from rising or falling markets

Use MINIs for leveraged trading on rising or falling markets. So whatever the markets are doing, you can potentially profit from your market view.

Transparent pricing

The market price of MINIs tracks the price movements in line with the underlying asset price. The pricing takes into account the Strike Price, which is the finance provided by the issuer. See 'How they work' below.

Funding costs charged daily

Funding costs are applied to the Strike Price daily, and differ depending on the issuer, underlying asset and whether the MINI is Long or Short. Refer to the issuer for information.

Limited risk

MINIs have an inbuilt Stop Loss. This ensures that the value of the MINI cannot be negative and you cannot lose more than your initial outlay.

No set expiry dates

MINIs have no set expiry dates. However, if a Stop Loss is triggered or the issuer calls an early termination, the MINI will expire. Refer to the issuer for specific information.

Wide asset range

You can gain exposure to a wide range of underlying assets including shares, indices, currencies and commodities. Refer to the issuer for specific information.

Risks

Leveraging can magnify losses

If the value of the underlying asset moves against you, this will lead to a larger percentage fall in the MINI price.

Specific risks

Each MINIs series has its own specific risks. You should consider the Product Disclosure Statement (PDS) (available from the issuer) before making any investment decision.

Issuer risk

You are exposed to the Issuer of the MINI series not performing its obligations. MINIs are are not guaranteed by the ASX, the National Guarantee Fund, ASX Clear or any other person.

Funding costs risk

The issuer has the right to change interest rates that may impact and the holding cost of the MINI.

Extraordinary events

Extraordinary events and potential changes to the MINI terms could adversely affect the value and limit the life of a MINI.

Stop Loss trigger

If the built-in Stop Loss is triggered the MINI will be suspended with a remaining value to be determined by the issuer. This could be zero.

How they work

MINIs provide traders with the opportunity to trade rising or falling markets on a leveraged basis. MINI longs give traders the opportunity to profit from rising markets. MINI Shorts give traders the opportunity to profit from falling markets. MINIs have an in-built Stop Loss which limits any losses to the MINI price you pay on the ASX/Cboe to open a trading position. With no set expiry dates, MINIs have the potential to provide you with exposure to a trading position for a time that suits you without the need to roll maturities like other derivatives. MINIs can be bought and sold on the ASX and Cboe.

Rates and fees

Trade execution

Brokerage fee amount by transaction value1,2,3,4

Trade online (via website, mobile apps or other platforms) and settle your trade to a CDIA5 or CommSec Margin Loan5

$5.00 (Up to and including $1,000)

$10.00 (Over $1,000 up to $3,000 (inclusive))

$19.95 (Over $3,000 up to $10,000 (inclusive))

$29.95 (Over $10,000 up to $25,000 (inclusive))

0.12% (Over $25,000)

Trade online (via website, mobile apps or other platforms) and settle into a bank account of your choice

$29.95 (Up to and including $9,999.99)

0.31% ($10,000 and above)

Trades over the phone and deceased estates6

$59.95 (Up to and including $10,000)

0.52% (Over $10,000 up to $25,000 (inclusive))

0.49% (Over $25,000 up to $1,000,000 (inclusive))

0.11% (Over $1,000,000)

Trades requiring settlement through a third party6

$99.95 (Up to and including $15,000)

0.66% (Over $15,000)

1 Different brokerage rates apply to CommSec Pocket trades executed through CommSec Pocket App or CommBank App.

2 Alternative brokerage rates may be agreed from time to time and (if agreed to) will be payable under clause 22 of CommSec's Share Trading Terms and Conditions. If you are offered, and agree to a tiered brokerage rate, this may result in brokerage charges that differ from rates expressly disclosed within the CommSec FSG.

3 Unless otherwise indicated, where a fee or charge is expressed as a percentage, it refers to a percentage of the transaction value. For GST rounding reasons, the final brokerage fee may result in a slight variance from the stated or expected charge, which may exceed two cents for large trades.

4 Brokerage charged (shares, warrants, listed managed investments and derivatives): Brokerage at these rates applies each time you trade a stock, warrant, listed managed investment or derivative.

5 To be eligible, you must trade online, be CHESS Participant Sponsored with CommSec and settle your trades through either a Commonwealth Direct Investment Account (CDIA) or a CommSec Margin Loan.

6 Includes CommSec Margin Lending and Geared Investments Lending Trades and where the Commonwealth Bank exercises its rights under the loan terms and conditions.

Funding costs vary depending on the issuer and the underlying asset. Generally, funding costs are capitalised daily and added to the MINI's Strike Price. Refer to the issuer for specific information.

Get started

Open a CommSec Share Trading Account to invest in Warrants

To start trading Warrants with CommSec, it is an ASX and Cboe requirement that you read the Understanding Trading and Investment Warrants (ASX) and Investing in Warrants (Cboe) booklets. You’ll also need to complete the Warrants Trading Agreement. To help you get started:

Already have a CommSec Share Trading Account?

If you have a CommSec Share Trading Account, you can review the required booklets and complete the Warrants Trading Agreement via the Service Centre. Login to CommSec below, go to Settings then Create a request. Search for Warrant Trading Agreement then follow the prompts.
Log in now >

Don't have a CommSec Share Trading Account?

You’ll need to become a CommSec customer before investing in Warrants. Join now to open a Share Trading Account and select ‘Open a CDIA’1.
Join now >

Important Information

Warrants are financial instruments issued by banks and other institutions which are traded on ASX Limited and Cboe Australia Pty Limited. They are a form of derivative giving the holder the right to trade (Buy or Sell) or cash settle the underlying instrument (eg shares in a company, a currency, an index or a commodity or a managed investment) with the warrant issuer for a particular price at a particular time according to the terms of issue. Warrants are issued pursuant to a Product Disclosure Statement (PDS) which may be amended or supplemented from time to time. You should carefully consider the PDS before making any investment decision, including whether to acquire, or continue to invest in that product.

1 The target market for the Commonwealth Direct Investment Account (CDIA) can be found within the product’s Target Market Determination.

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© Commonwealth Securities Limited ABN 60 067 254 399 AFSL 238814 (CommSec) is a wholly owned but non-guaranteed subsidiary of the Commonwealth Bank of Australia ABN 48 123 123 124 AFSL 234945. CommSec is a Market Participant of ASX Limited and Cboe Australia Pty Limited, a Clearing Participant of ASX Clear Pty Limited and a Settlement Participant of ASX Settlement Pty Limited.

The information on this page has been prepared without taking into account your objectives, financial situation or needs. For this reason, any individual should, before acting on this information, consider the appropriateness of the information, having regards to their objectives, financial situation or needs, and, if necessary, seek appropriate professional advice.

CommSec does not give any representation or warranty as to the accuracy, reliability or completeness of any content on this page, including any third party sourced data, nor does it accept liability for any errors or omissions.

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