Live Matrix

Overview

Live Matrix provides real-time visibility into structured warrants pricing by displaying the relationship between warrant bid/ask prices and their underlying stock prices. This powerful feature helps warrant traders identify optimal entry and exit points by understanding the warrant's sensitivity to underlying price movements and detecting pricing inefficiencies.

tip

Live Matrix is a premium feature available exclusively for Elite plan subscribers.

Understanding Live Matrix

What is Live Matrix?

Live Matrix shows you the pricing structure of structured warrants in relation to their underlying stocks, displaying:

• Warrant bid/ask prices at various levels
• Underlying stock bid/ask prices corresponding to each warrant price level
• Sensitivity calculations showing how the warrant price responds to underlying price changes
• Spread indicators highlighting potential trading risks
• Price groupings for easier visual identification

This provides insights into:

• Fair warrant pricing relative to underlying stock movements
• Trading opportunities when warrant pricing becomes inefficient
• Risk assessment through spread analysis
• Sensitivity patterns for different strike prices and expiries

Subscription Tiers

Live Matrix access is exclusive to Elite plan:

• Basic Plan: Not available
• Pro Plan: Not available
• Elite Plan: Full access to Live Matrix for all structured warrants

What are Structured Warrants?

Structured warrants are derivative securities that give traders the right (but not the obligation) to buy or sell an underlying asset at a specific price (strike price) before a certain date (expiry date). The Live Matrix helps traders understand how warrant prices move in relation to their underlying stocks.

Live Matrix Display

Layout Structure

The Live Matrix display consists of a table showing multiple price levels:

Column Headers

1. Warning Icon (Optional) - First column indicator

   • Red cube icon appears when spread is larger than expected
   • Indicates potential trading risk due to wide spread
   • Hover over the icon for detailed warning message

2. Sensi. (Sensitivity) - Warrant sensitivity to underlying price movement

   • Shows how many underlying price ticks span this warrant bid level
   • Higher sensitivity indicates larger underlying price range for the same warrant price
   • Helps identify how responsive the warrant is to underlying movements

3. U/Bid (Underlying Bid) - The underlying stock's bid price

   • Shows the bid price of the underlying stock (e.g., index or stock)
   • Multiple underlying bid prices may correspond to the same warrant bid
   • Color-coded: Bold green when it matches the current best bid or underlying price
   • Updates in real-time as underlying stock prices change

4. Bid - The warrant's bid price

   • Price at which you can sell the warrant
   • Multiple underlying prices may map to the same warrant bid
   • Color-coded: Bold green when highlighted as best bid level
   • Grouped using alternating row backgrounds for easier reading

5. Ask - The warrant's ask price

   • Price at which you can buy the warrant
   • May be the same across multiple underlying price levels
   • Color-coded: Bold green when highlighted as best ask level
   • Shows where the warrant is offered

6. U/Ask (Underlying Ask) - The underlying stock's ask price

   • Shows the ask price of the underlying stock
   • Multiple underlying ask prices may correspond to the same warrant ask
   • Color-coded: Bold green when it matches the current best ask or underlying price
   • Updates in real-time as underlying stock prices change

Visual Indicators

Row Grouping

Rows are grouped using alternating background colors:

• Alternating gray background helps distinguish different warrant bid price levels
• All rows with the same warrant bid price are grouped together
• Makes it easier to see how multiple underlying price levels map to one warrant price
• Visual separation helps track complex relationships

Price Highlighting

Current market prices are highlighted in bold green:

• U/Bid highlighted: Shows the current best bid for the underlying stock
• U/Ask highlighted: Shows the current best ask for the underlying stock
• Bid/Ask highlighted: Shows the warrant price levels around current best bid/ask
• When underlying price is used (no best bid/ask available), underlying price is highlighted instead

Spread Warning

A red cube icon appears when the spread is concerning:

• Indicates the spread is larger than one tick
• Hover for tooltip: "Spread is larger than expected, please be cautious!"
• Suggests potential difficulty in executing trades at fair prices

Real-Time Updates

Live Matrix updates continuously during market hours:

• Underlying stock prices update in real-time
• Warrant prices update as market conditions change
• Sensitivity calculations adjust automatically
• Best bid/ask highlighting moves with the market

Summary Display

Below the main table, additional information is shown:

Level Filter Control

A dropdown selector allows you to control how many levels to display:

• Options: 1 level, 2 levels, 3 levels, 4 levels, 5 levels (default)
• Shows levels around the best bid/ask prices
• Example: "Showing 5 levels around best bid/ask"
• Fewer levels provide focused view on most relevant prices
• More levels provide broader market context

External Link

A "View Live Matrix" button links to detailed external analysis:

• Opens the warrant issuer's official Live Matrix page
• Provides additional detailed information and analysis
• Available for supported warrants
• Opens in a new tab for convenient reference

Features and Settings

Level Filtering

Control how many price levels are displayed around the best bid/ask:

1. Use the dropdown selector below the table
2. Choose from 1 to 5 levels
3. The display updates immediately to show your selected range
4. Your preference is saved for future sessions

Use Cases:

• 1-2 levels: Focused view for quick trading decisions on most relevant prices
• 3-4 levels: Balanced view showing near-term price relationships
• 5 levels: Comprehensive view for understanding broader pricing structure

Lower level counts are useful during fast-moving markets when you need quick decisions. Higher level counts help when analyzing warrant pricing patterns or planning complex strategies.

External Live Matrix View

Access detailed warrant analysis through external links:

1. Click the "View Live Matrix" button below the table
2. Opens the warrant issuer's official Live Matrix page in a new tab
3. Provides additional charts, historical data, and issuer-specific analysis
4. Complements the in-platform Live Matrix with deeper information

Use Case: Use the external view for detailed research and analysis, while using the in-platform Live Matrix for real-time trading decisions.

Underlying Stock Information

The toolbar at the top displays real-time underlying stock data:

• Current price, change, and percentage change
• Real-time best bid and best ask prices
• Trading volume and other key metrics

This context helps you understand the underlying stock's current state while analyzing warrant pricing.

How to Read Live Matrix

Basic Reading

1. Identify Current Market Position

   • Look for bold green highlighting in the U/Bid and U/Ask columns
   • This shows where the underlying stock is currently trading
   • The corresponding warrant bid/ask prices show your trading options at current underlying levels

2. Check the Spread

   • Look for warning icons in the first column
   • Wide spreads increase trading costs and risk
   • Narrow spreads (no warning icon) indicate better liquidity

3. Assess Sensitivity

   • Check the Sensi. column for each warrant bid level
   • Higher sensitivity means the warrant price stays the same across a wider underlying price range
   • Lower sensitivity means warrant prices adjust more frequently with underlying movements

4. Understand Price Grouping

   • Note how multiple underlying prices map to the same warrant price
   • Alternating row backgrounds help track these groupings
   • This shows the "step function" nature of warrant pricing

Advanced Reading

1. Sensitivity Pattern Analysis

   • Compare sensitivity values across different warrant bid levels
   • Consistent sensitivity suggests uniform pricing structure
   • Varying sensitivity may indicate pricing inefficiencies or different delta zones
   • Higher sensitivity at certain levels may indicate less liquid pricing points

2. Underlying Price Movement Prediction

   • Observe where the current underlying price sits within the displayed levels
   • If near the top of the range, the warrant may increase if underlying rises further
   • If near the bottom, the warrant may decrease if underlying falls further
   • Position within the matrix helps anticipate next price movement

3. Arbitrage Opportunity Detection

   • When sensitivity differs significantly between adjacent warrant price levels
   • When underlying bid/ask spread is unusually narrow compared to warrant spread
   • When warrant pricing seems inconsistent with underlying price movements

4. Market Depth Assessment

   • More underlying price levels for the same warrant price suggests:
     • Lower delta (for call warrants further from strike)
     • Higher time to expiry
     • Lower volatility expectations
   • Fewer levels suggest higher sensitivity to underlying movements

5. Entry and Exit Timing

   • If underlying price is just below a level that would increase warrant price, wait for the move
   • If underlying price just moved into a new warrant price level, act quickly before it reverses
   • Use spread warnings to avoid entering positions with high trading costs
   • Consider how far underlying needs to move for warrant to reach next price level

Practical Examples

Example 1: Identifying Fair Entry Points

If you observe:

• Underlying bid is currently at RM9.50 (highlighted in green)
• Warrant bid at RM0.125 covers underlying range from RM9.45 to RM9.52
• Sensitivity is 7.0 (meaning seven Bursa ticks of underlying movement per warrant price level)
• No spread warning icon

This indicates a fair pricing structure with good liquidity. If you believe the underlying will move up to RM9.55, you can expect the warrant to move to at least the next bid level (RM0.130), providing a clear risk/reward setup on Bursa Malaysia.

Example 2: Avoiding Wide Spread Trades

If you see:

• Red cube warning icon in the first column
• Warrant bid at RM0.075, warrant ask at RM0.090
• Spread of RM0.015 (more than one tick on Bursa)

This warns you that trading costs are high. The wide spread means you'll lose 20% (0.015/0.075) immediately upon entering a position. Consider waiting for the afternoon session when Malaysian liquidity improves or choosing a different warrant from another issuer.

Example 3: Understanding Sensitivity Differences

When comparing two rows on the same warrant:

• Row A: Sensi. = 3.0, covering U/Bid RM5.70-RM5.73
• Row B: Sensi. = 8.0, covering U/Bid RM5.40-RM5.48

Row A has lower sensitivity, meaning the warrant price is more responsive to underlying movements at higher price levels (near or in-the-money). Row B has higher sensitivity, meaning the warrant price is less responsive at lower underlying price levels (out-of-the-money).

This helps you understand which warrant will move more aggressively for a given underlying price change and whether a tighter Bursa price zone aligns with your view.

Example 4: Multiple Underlying Levels, One Warrant Price

If the table shows:

• Warrant bid: RM0.125 (same for multiple rows)
• U/Bid values: RM1.45, RM1.46, RM1.47, RM1.48, RM1.49
• All mapping to ask RM0.130

This means even if the underlying bid moves from RM1.45 to RM1.49 (four ticks), the warrant price remains at RM0.125 bid / RM0.130 ask. You need the underlying to move beyond this range for the warrant price to change. This "plateau" effect is common in Malaysian structured warrants and helps you understand when to expect price changes.

Important Notes and Limitations

Real-Time Data

• Live Matrix displays real-time data for Elite subscribers only
• Reflects current order book state for both warrants and underlying stocks
• May lag slightly during extremely volatile market conditions

Pricing Mechanism

Live Matrix reflects the market-making model used for structured warrants:

• Issuers provide bid/ask quotes based on underlying stock prices
• Warrant prices are derived from underlying prices, volatility, time to expiry, and other factors
• The relationship shown in Live Matrix is based on issuer pricing models
• Actual execution prices may vary slightly from displayed prices

Sensitivity Interpretation

• Sensitivity is a simplified measure of how warrant prices relate to underlying prices
• It does not directly represent the warrant's delta (although related)
• Higher sensitivity doesn't mean worse pricing—it reflects the warrant's characteristics
• Consider sensitivity alongside other warrant metrics (gearing, effective gearing, implied volatility)

Market Context

Live Matrix should be interpreted within broader market context:

1. Underlying trend: Warrant pricing may adjust for expected volatility in trending markets
2. Time to expiry: Shorter expiry warrants show different sensitivity patterns than longer-dated ones
3. Strike price position: In-the-money, at-the-money, and out-of-the-money warrants behave differently
4. Market volatility: High volatility periods may show wider spreads and different sensitivity patterns

Trading Considerations

• Spread warnings indicate potential difficulty in executing trades at fair prices
• Even without warnings, always compare bid-ask spreads before trading
• Warrant prices can change quickly with underlying movements
• Consider transaction costs when evaluating warrant trading opportunities
• Warrant trading involves significant risk—ensure you understand the product before trading

Best Practices

1. Monitor Underlying Stock First

   • Analyze the underlying stock's trend, support/resistance, and momentum
   • Warrant analysis is secondary to understanding the underlying asset
   • Use technical indicators on the underlying to time warrant entries
   • Watch for underlying news and events that may affect prices

2. Check Sensitivity Before Trading

   • Understand how much the underlying needs to move for your warrant to profit
   • Compare sensitivity across different warrant price levels
   • Choose warrants with sensitivity patterns matching your market view
   • Higher sensitivity (lower responsiveness) may suit longer-term plays

3. Avoid Wide Spread Warrants

   • Look for warning icons indicating spread issues
   • Wide spreads significantly reduce your profit potential
   • Compare spreads across similar warrants from different issuers
   • Trade during market hours when liquidity is typically better

4. Use Level Filtering Effectively

   • Start with 5 levels to understand the full pricing structure
   • Reduce to 2-3 levels during active trading for focus
   • Increase levels when planning trades to see broader context
   • Adjust based on your screen size and information needs

5. Time Your Entries Based on Underlying Position

   • Wait for underlying price to reach favorable positions within the matrix
   • If underlying is at the edge of a warrant price level, anticipate the next move
   • Consider entering when underlying just entered a more favorable price zone
   • Use underlying support/resistance to time warrant entries

6. Understand the Plateau Effect

   • Recognize that warrant prices move in steps, not continuously
   • Multiple underlying price levels may not change warrant prices
   • Plan your trades knowing underlying needs to reach certain levels
   • Don't expect profit from small underlying movements within the same warrant price level

7. Practice Risk Management

   • Warrants have limited lifespan and can expire worthless
   • Use only capital you can afford to lose on warrant trades
   • Consider position sizing based on warrant risk characteristics
   • Have exit plans for both profit-taking and loss-limiting

Frequently Asked Questions

Q: What's the difference between Live Matrix and Market Depth?

A: Market Depth shows the order book for a single security (pending buy and sell orders), while Live Matrix shows the relationship between warrant prices and underlying stock prices. Live Matrix helps you understand how warrant prices will change as the underlying stock moves, whereas Market Depth shows immediate supply and demand for the warrant or stock itself.

Q: Why do multiple underlying prices show the same warrant price?

A: Structured warrants move in discrete price steps (ticks) while underlying stocks also move in ticks. Because warrants are derivative securities, their price increments don't always align one-to-one with underlying movements. This creates "plateaus" where the underlying can move several ticks before the warrant price changes. This is a normal characteristic of warrant pricing.

Q: What does the sensitivity number actually mean?

A: Sensitivity shows how many underlying price ticks correspond to one warrant bid price level. For example, a sensitivity of 5.0 means the underlying price can move 5 ticks while the warrant bid remains at the same level. Lower sensitivity means the warrant price is more responsive to underlying changes.

Q: How do I know if a warrant is fairly priced using Live Matrix?

A: Live Matrix shows the market maker's pricing structure but doesn't directly indicate "fair value." To assess fairness:

1. Compare the pattern to similar warrants
2. Check if sensitivity is consistent across price levels
3. Verify the spread is not excessively wide
4. Use external tools to calculate theoretical warrant prices based on Black-Scholes or similar models
5. Compare with the issuer's official Live Matrix for additional insights

Q: Why does the highlighted row change?

A: The bold green highlighting follows the current best bid/ask prices of the underlying stock. As the underlying stock's order book changes (which happens continuously during trading), the highlighting moves to show which warrant price levels correspond to current market conditions. This helps you track real-time trading opportunities.

Q: What should I do when I see a spread warning icon?

A: A spread warning (red cube icon) indicates the difference between warrant bid and ask is larger than expected. This means:

1. You'll pay a high trading cost to enter and exit positions
2. The warrant may have lower liquidity
3. Consider waiting for better pricing or choosing a different warrant
4. If you must trade, use limit orders and be patient for fills
5. Wide spreads often narrow during more active trading hours

Q: Can I use Live Matrix for all types of warrants?

A: Live Matrix is available specifically for structured warrants from supported issuers. It is not available for:

• Company-issued warrants
• Warrants from unsupported issuers
• Other derivative products (options, futures)
• Regular stocks or bonds

If no Live Matrix data appears, the warrant may not be supported or may be temporarily unavailable.

Q: What if the "View Live Matrix" button doesn't appear?

A: The "View Live Matrix" button appears only when:

1. The warrant is from a supported issuer
2. The issuer provides an external Live Matrix page

If the button doesn't appear, the warrant may not have an external Live Matrix page available, but the in-platform Live Matrix still provides valuable pricing information.

Q: How do I choose the right number of levels to display?

A: The optimal level setting depends on your use case:

• 1-2 levels: Best for fast execution decisions, focusing only on immediate price levels
• 3 levels: Balanced view for most trading situations
• 4-5 levels: Comprehensive view for analysis and understanding pricing structure

Start with 5 levels when first analyzing a warrant, then reduce to 2-3 levels when actively trading. Adjust based on your screen size and how much information you can process quickly.

Summary

Live Matrix is a powerful tool that provides transparency into structured warrant pricing by showing the relationship between warrant prices and underlying stock prices. By understanding this pricing structure, warrant traders can:

• Identify optimal entry and exit points for warrant trades
• Understand how sensitive warrants are to underlying price movements
• Detect potential pricing inefficiencies and opportunities
• Assess trading costs through spread analysis
• Anticipate how warrant prices will change as underlying stocks move
• Make more informed decisions about warrant selection and timing

Remember that Live Matrix is one tool in your trading toolkit. Always combine it with:

• Underlying stock analysis (technical and fundamental)
• Warrant specifications (strike, expiry, conversion ratio)
• Risk management principles
• Market conditions and news
• Other warrant metrics (implied volatility, Greeks, gearing)

Structured warrants are complex financial instruments with significant risk. Ensure you fully understand how warrants work, practice with small positions, and never invest more than you can afford to lose.

For optimal results, the Elite plan provides exclusive access to Live Matrix for all supported structured warrants, enabling you to trade with confidence and transparency.