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CFD's

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Impala
Occasional Contributor

CFD's

Good Day All Thank you very much on the infomation on NIL PAID LETTERS. Prancing Horse you seem to be quite up to CFD's can you explain a little more becaus an academic digestion is a bit difficult for me and i think it will be easier coming from you.You know layman's language.
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Super Contributor

Re:CFD's

CFDs like a packet of smokes, comes with serious health warnings. Before you attempt trading them you must attend a course, then be prepared to lose money when you start, if beginner's luck is with you to start , you will get a big smack down the line as you will fall into the trap that this is money for jam. In a nutshell , if you buy a share say trading at R100 & you buy 1000 of them , you will have to have R15000 as a margin, if the margin required is 15% as your exposure is now R100000. You will pay the (SABOR ),S A Benchmark Overnight Rate plus 2% on the full value of R100000. Your cost of purchase and sale is also based on the total value and this varies from house to house some .2 others maybe .4% on the full exposure. If the share moves to R95 they will knock on your door for an additional R5000 margin, if it goes to R105 your up R5000. Looks simple , but remember the costs creep up on you. You have been warned.
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Impala
Occasional Contributor

Re:Re:CFD's

Thanks,will keep in contact.
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Highlighted
Valued Contributor
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Super Contributor

Re:CFD's

Now prancing horse has such a sweet way with words! And probably all true
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lance132
New Contributor

Re: CFD's

Been trading CFD's for about a year and a half now.

 

My advice: - Attend a seminar/webinar and read-up for at least 3 months before getting started

 

 

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StuS
Contributor

Re: CFD's

You can also check out the article I have written on the basics of CFDs, of more importance is the link to the video recording of our CFD presentation near the bottom.

https://community.standardbank.co.za/t5/Products/What-is-a-CFD/ta-p/7122
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