Each warrant has an expiry date. When the product expires, the warrant will be settled and delisted. The derivative warrants listed in Hong Kong are settled in cash. After the settlement of in-the-money warrants, you will receive the cash value.
As the name suggests, this is the final day on which the warrant can be traded. After the final trading day, the product will be delisted and awaits settlement. In general, there are three full trading days between the final trading day and the expiry date of the warrant.
The warrant value includes its intrinsic value and time value. When the product is gradually reaching its expiry date, the time value will be deducted each day. In addition, the amount deducted for the time value differs day-to-day. The closer it is to the expiry date, the larger the amount that will be deducted. When the product expires, the time value becomes zero.