Inline Warrants

Inline Warrants are a type of structured product that entitle the investors to receive a pre-determined fixed payment at expiry, depending on whether the underlying1 falls at or within (i.e. In-The-Range) or outside (i.e. Out-of-The- Range) the Upper and Lower Strikes at expiry.




  • Upper and Lower Strikes, with no knockout barrier
  • In-The-Range (ITR): fixed payment of HK$1
  • Out-of-The-Range (OTR): fixed payment of HK$0.25
  • Maximum upside and downside is known at the time of investment
  • Can be bought and sold before expiry or held until maturity


Payment at Expiry




  • Range trading vs directional trading (DWs or CBBCs)
  • Possibility to make profits in a sideway or flat market
  • Investors may choose from different strike prices to express their views on the underlying stock price or index level



  • Profit potential is capped by the pre-determined payment
  • Maximum loss is limited to initial investment
  • Trading above HK$1 may not reflect the true value of the inline warrant; any inline warrant trades executed at the price above HK$1 will not be recognized and will be cancelled by HKEX