Citigroup Inc. Warrant

Citigroup Inc. Warrant is a derivative financial instrument known as a structured product, specifically issued by Citigroup for trading on the Hong Kong market. Its primary purpose is to provide investors with leveraged exposure to the price movement of a specific underlying asset—typically a blue-chip stock or equity index—without requiring ownership of the actual asset. This warrant gives the holder the right, but not the obligation, to purchase (call warrant) or sell (put warrant) the designated asset at a predetermined exercise price on or before the expiry date. In Hong Kong, such warrants are typically European style, meaning they can only be exercised at expiry and are settled in cash rather than by delivering the underlying security. Citigroup Inc. Warrants offer features like a low entry cost, built-in gearing effect, and capped losses, allowing investors to participate in directional bets or volatility trading with a clearly defined maximum risk. The warrants play a significant role in the Hong Kong financial market by contributing to its liquidity and offering flexible tools for portfolio management and tactical trading strategies.