Covered Warrants, powerful trading tools

 Covered warrants provide a powerful way to leverage your exposure to a wide range of stocks, indices, commodities and currency pairs. Covered Warrants overview

Covered warrants are similar to options in that there are two types: Call Warrants for rising markets, and Put Warrants for falling markets. They are also very similar in that you are essentially buying the right to purchase (Call Warrant) or sell (Put Warrant) a specific Underlying Asset at a specific price (the Strike Price), on a specific date (the Strike Date).

These are highly flexible tools, offering gearing of between 5 and 40 times. This means that every £1 invested can provides the same profit or loss as up to £40 invested directly in the underlying asset.

If your investment results in a loss, your losses will be up to 40 times greater than a direct investment in the underlying asset. There is no knock out feature but the worst that can happen is that your product can expire worthless.

A covered warrant will generate a payout based on how far the underlying asset price is above (call) or below (put) the Strike Price at expiry. Prior to expiry the price will move according to three main variables; the underlying asset price, time to expiry and implied volatility. It is important to understand each before investing

 Choosing a Covered Warrant 

There are two types to choose from; Call Warrants if you expect markets to rise, and Put Warrants if you expect a fall. Your choice then depends on how much risk you are prepared to take, and how long you want to hold your investment for. There is immense flexibility to choose so you can find a product to suit your needs.


Before trading for the first time (and periodically after) you should read the Product Guide and study the Final Terms. If you do not fully understand the product you should seek advice from a financial adviser prior to trading.

14 Covered Warrant Strategies




Having read and understood the product guide, you can buy or sell a Covered Warrant at any time during the trading day as live prices are provided on the London Stock Exchange. You cannot trade directly with Societe Generale. You can trade Covered Warrants with a UK stockbroker in a dealing account or SIPP.

Covered Warrants are complex products. As such, your stockbroker will require you to complete a Complex Products Assessment prior to trading for the first time.


The products are issued by SGA Societe Generale Acceptance, a 100% subsidiary of Societe Generale and Guaranteed by Societe Generale. Any failure by SGA Societe Generale Acceptance to make payments due under the Product may result in the loss of all or part of your investment. Insofar as payments are due by Societe Generale in its capacity as Guarantor, investors are exposed to a credit risk on Societe Generale.


Covered Warrants are suitable for sophisticated retail clients in the UK, who have a good understanding of the underlying market and characteristics of the security. In particular, it is important that, before you make any investment, you understand that you could lose all of your investment when investing in these products, even if they are held until the end of their term.

You should read the Product Guide and Final Terms for your chosen product before making any investment. You should read the Final Terms carefully and keep it safe for future reference.


This website is issued in the U.K. by the London Branch of Societe Generale. Societe Generale is a French credit institution (bank) authorised by the Autorité de Contrôle Prudentiel et de Résolution (the French Prudential Control and Resolution Authority)  and the Prudential Regulation Authority and subject to limited regulation by the Financial Conduct Authority and Prudential Regulation Authority.  Details about the extent of our authorisation and regulation by the Prudential Regulation Authority, and regulation by the Financial Conduct Authority are available from us on request.

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