these are better than options, IMO. How is it called for options ? e.g.: A) you buy S+P500 call base 1100 and you sell S+P500 calls base 1200, as one combined contract. B) you buy S+P500 put base 1200 and you sell S+P600 put base 1100 as one combined contract expiry end of 2011 now A+B together are worth exactly 100, if you have A+B together it can be settled at 100 so selling A is the same as buying B and the margin is just the price of B. So you can sell options with reduced margin and better transparency. these could then be traded as ETFs or separate option contracts. there are some of these capped/floored warrants in Europe, I can't find them in USA. Societe Generale has some on the CAC, but they would require more than 100 in above example. The best possible derivative, high leverage, limited risk. Like binary options. However brokers for binary options require an additional "fee" like Societe Generale in the example above - they are not freely traded on an exchange, AFAIK.