Warrant trading means that the holder acquires a right, not a duty, and the recipient has the right to decide whether or not to honour the contract, while the issuer has only the obligation to be executed, and therefore the investor has to pay a price to acquire this right.

The holder of the latter is obliged to execute a contract for the purchase and sale of a specified asset at a specified price at a specified time in the future and this transaction is known as a warrant transaction.

Warrants can be traded in the business department of an exchange-approved securities firm with membership. If the business department is unable to trade warrants on behalf of the broker, it may be that the business department's eligibility to trade warrants has been restricted and needs to be confirmed by contacting the broker.

Before trading warrants, investors should understand the relevant business rules and the risks that may occur at the brokerage firm, and sign a risk disclosure letter formulated by the Shanghai Stock Exchange before trading warrants.

The purchase and sale of warrants is very similar to that of stocks. Investors can enter the warrant code, price, quantity and direction of purchase and sale of warrants through the reporting channels provided by the broker, such as computer terminals, online trading platforms and telephone commissions, and the account required is a stock trading account.

The number of warrants that can be purchased in a single transaction cannot exceed 1,000,000, and the number of warrants to be purchased must be an integer multiple of 100, meaning that the minimum number of warrants that an investor can buy at any one time should be 100 or an integer multiple of 100.