A warrant that gives the holder normal exposure to index prices movements, i.e., its value is linked to the performance of an index such as S&P 500, Nikkei 225, etc. Index warrants are usually settled in cash (they are cash-settled instruments), though delivery of the underlying security is also possible. The settlement amount is equal to the “difference between the exercise level and the closing index level” multiplied by a specific multiplier (converter of the points to monetary values).

The multiplier is determined by the issuer of the warrant.