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Online Share Trading

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Impala
Occasional Contributor
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.
6 REPLIES 6
prancing_horse
Super Contributor
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.
Impala
Occasional Contributor
Thanks,will keep in contact.
Galuc
Super Contributor
Now prancing horse has such a sweet way with words! And probably all true
Trader_Lance
New Contributor

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

 

 

StuS
Contributor
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