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ALMI

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Not applicable
Anybody trading the almi.How does that compare to trading the alsi.
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20 REPLIES 20
asylum
Super Contributor
same thing but at a 1000% more expensive to trade, 10 almi contracts = R125.00 cost, 1 alsi contract which is the same as 10 almis= R 12.50
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Not applicable
and it is less liquid, which means the spreads are wider. But it is an excellent tool for trading longer term, such as Simon's Lazy Trade, where the points move is more than sufficient to cover the costs
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Not applicable
Simon why so expensive.If u make this cheaper a lot of people would trade it?
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Not applicable
From my point of view, it is not really that expensive 12pts on the trade. Compare that to a warrant, or satrix, it is very cheap. But it is not an instrument for day trading
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Not applicable
Ok.But what is the reason for it being so much more than the alsi.If the cost can come down we can also use it to daytrade with smaller position size than using the alsi.
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SimonPB
Valued Contributor
it is less liquid, but there is a market makewr so not really an issue .. market maker is 3-8 points wider then then the ALSI .. issue here is stop loss in that it onlyy triggers on a trade, and there may not be a trade to trigger the stop loss ..
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Not applicable
If the cost is decreased more people wil trade it and the liqudity would improve.Or is the cost not a standard bank issue.
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SimonPB
Valued Contributor
I not sure it is expensive .. as commented inclu vat less then 15 points each way .. basically you pay R12.50 plus vat for R28k exposure ?? issue is that people anchor on the ALSI being the same but more bang for buck .. bottom line, what can you trade for R12.50 + vat ??
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asylum
Super Contributor
i disagree it seems that the almi was created for people who dont have a lot of capital, but at the same time market makers are taking advantage of the situation and ripping them off with brokerage fees, thats the way i see it.
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SimonPB
Valued Contributor
sorry help me understand how R12.50 is a rip off ??? if we charged R30 for ALSI everybody would be all excited about how cheap the ALMI is ..
an you're confusing market maker with brokerage ..
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asylum
Super Contributor
well 12.50 for a one tenth exposure of what you get trading the alsi for the same price that in my humble opinion is a rip off.
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SimonPB
Valued Contributor
well then we disagree (I could go on citing many examples, but we going nowhere) .. I can of course make your pain go away by increasing ALSI to R125 (most brokers charge 20-30 points per ALSI contract, R200-R300) .. coz ALMI for R1.25 is not possible ..
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SimonPB
Valued Contributor
to move forward .. read the article (link below) on anchoring .. and google looking for more .. with respect youu are displaying it here, and it will hamper your trading ..
http://www.tickertalk.co.za/blog.php?user=francob&blogentry_id=2480
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Not applicable
No dont increase the alsi.The question was just why do the almi have to be 10 times the cost.If it was cheaper standard bank will make more money and the small investor can start trading with smaller position size.
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asylum
Super Contributor
Simon i realy dont see what this has to do with the way someone trades, when i trade i take cost of trade as part of my set up, so lets be honest here trading the almi is a no brainer rather save your pennies and wait till you can afford to trade the alsi.
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quovadis
Frequent Contributor
Anyone done an exercise on comparing returns on using the ALMI instead of warrants for trading Simon's Lazy System?
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SimonPB
Valued Contributor
well I don't agree on that either .. if you can't afford the ALSI my view is that youu souldn't be trading as your capital is too small to do proper risk management ..
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asylum
Super Contributor
my point exactly thats why i say save until you can afford it, so we do agree.lol
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SimonPB
Valued Contributor
so then the whole ALMI debate is ??
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