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Online Share Trading

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ABL..

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prancing_horse
Super Contributor
Received from PSG "We received notification from our clearing bank that they are not comfortable with leveraged ABL positions. They have requested that we do not open any new additional positions in ABL, however clients currently holding ABL contracts will be allowed to keep these contracts open on the basis that 100% margin will be applied. The above increase will take effect the 30th June 2014" Would this explain the sudden fall in the share price once this announcement was made yesterday?
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8 REPLIES 8
Not applicable
It might, yes. A 100% margin being applied is a helluva kick in the nuts - as you effectively don't have leverage anymore, and would force people to exit their positions or face a pretty stiff margin call. All depends how many PSG customers were leveraged. No way to tell for sure.
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Not applicable
It might, yes. A 100% margin being applied is a helluva kick in the nuts - as you effectively don't have leverage anymore, and would force people to exit their positions or face a pretty stiff margin call. All depends how many PSG customers were leveraged. No way to tell for sure.
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prancing_horse
Super Contributor
I also thought that circular would have an effect, that's why I took a flier and bought this morning on IG, but don't think will hold longer than today. Already a very tidy profit, think it will pay my for trip to the Zambezi for some tiger fishing in September.
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prancing_horse
Super Contributor
@skaaptjop..From previous posts, I get the impression you hold your CFD position longer than most. Two to Three months, or sometimes longer?
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my average holding is 160 days. I use CFD's to build my own leveraged index - with my criteria being relative strength to the alsi, trading within 20% of the all-time high and a pullback measure (I use stochastics - but honestly, I tend to do this more on a gut feel basis).
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prancing_horse
Super Contributor
Thanks for the reply. I have found that initially I used to cash in much too early, but the last two years have held onto my positions a lot longer picking up one and sometimes two dividends on the way, which goes a long way to offset the interest the position draws. The fact that we've had a good bull run certainly has helped. I tend only to look at stocks that are fairly good dividend payers for that reason. I do however like the odd "smash and grab" like I did with ABL on Friday, in hindsight got out too early, as it could have paid for January's ski trip as well, but the aim was always a quick in and out. Did the same with Lonmin after Marakana , Cipla when CEO took the gap.
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Frogg
Frequent Contributor
Would you be getting back in or staying away?
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prancing_horse
Super Contributor
At this stage very far away. Looking to add to ARL if it pulls back to 120, with the further fall in price for both maize and soya today, profit margins are becoming a lot sweeter for that sector.
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