Talon Resources Targets Ontario Gold Growth After AIM Move and Eagle Lake Acquisition, CEO Says.Watch here

Less Ads, More Data, More Tools Register for FREE

Covered Warrant

Definition of 'Covered Warrant'

A covered warrant is an option issued by a third party, usually a finance house. The warrants can be issued on any number of underlying securities, including single equities, a basket of shares, or even a market index. The issuer of the warrant hedges their position using derivatives, such as traded options, and underlying shares; hence the term covered.