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Online Share Trading

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CFD'd

Reply
Preston
Super Contributor
I guess there is a first for everything. Entered into my first CFD'd contract today and i am bloody disgusted. 0.35% on initial purchase and less 0.35% on bid for an UNLISTED instrument. Effectively it is more costly that SSF. Only reason i entered into this Highly rubbish instrument is because no new position can be entered into Mar 2013 SSF contract. Absolutely rubbish , should change CFD for *****s for D!cks
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40 REPLIES 40
THRESHOLD
Super Contributor
Fantastic instrument if you handle with care. Your .35 + .2 (NOT .35 on the sell leg,) is way cheaper than the brokerage + taxes you would pay if you bought the shares yourself.
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Preston
Super Contributor
Nope , not neccessary, don't look at each leg seperately , look at total cost.
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THRESHOLD
Super Contributor
.35 + .2 if you buy and sell on the same day. Even if you are at .35 +.35 (+R114,) I am sure you will find it cheaper than trading the share. Interest at 7,5% is pretty impressive too. You could even trade CFD's on an overseas market for still lower effective costs and much lower interest rates.
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SimonPB
Valued Contributor
err SSF is 0.4 vs. 0.35% for CFD
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Preston
Super Contributor
Any reason why mtn is getting smashed today?
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SimonPB
Valued Contributor
no idea, BDay has ore on the Shanduka Nigeria deal, but that old news ..
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Rams
Super Contributor
Intraday....trade ALSI futures.......R28.50......liquidity and stop loss
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Preston
Super Contributor
Seems like that could be the best option going forward.
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HungryPunter
Regular Contributor
I enjoy the odd CFD trade. I had a bit of a problem regarding liquidity a while back on the SSF, especially when Standardbank had to exit the role of market maker.
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Cherry
Regular Contributor
Agree with Preston. CFD's are rubbish. I;ve discovered Alsi futures and oh boy, dont regret trading full time.
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Cherry
Regular Contributor
Agree with Preston. CFD's are rubbish. I;ve discovered Alsi futures and oh boy, dont regret trading full time.
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Rams
Super Contributor
No Preston, ALSI futures not for children .....stick with the kids stuff
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Preston
Super Contributor
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SimonPB
Valued Contributor
not CFD's, tis equities that are frot to trade, one of the reasons I stopped trading equities years back ..
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Preston
Super Contributor
Brokerage cost on purchase and brokerage percentage of bid price (if you are long) make this instrument costly and for an UNLISTED instrument.
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SimonPB
Valued Contributor
ya costs (but I initially moved to CFDs on STX products), for me that wasn't the issue .. rather it was about equities and the volatility (an compliance - just easier if I invest but not trade equities) ..
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Rams
Super Contributor
Simple solution is invest equities and intraday trade ALSI futures....no OVERNIGHT DERIVATIVE ...SSF no stop loss, CFD is OTC. ???
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Not applicable
By far - way far my most profitable trading style is CFD's over medium term - holdings of 2 to 6 months on the winners, ditching the losers within 1 week. I have been averaging 60% return on total portfolio for the last 3 years running. And the best thing is - I don't sit glued to the computer screen all day. In fact, you would probably be averaging around 40% return if you just stick to OST's technical tips - and there you don't need to do anything but read the recommendations.
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Rams
Super Contributor
Agree, but 2 big risks....overnight and OTC....with my style...no such risk and with iPad and smartphone, don't need to sit in front of computer all day....
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