Buy Price - SATRIX CFD's

[WernerH]

Hi All... I am looking to buy some cfd's against some of the satrix shares. I know that Satrix is a market maker so they sell and buy at a given price. I am however new to CFD's so just want to clarify. If I want to guarantee a buy should i put a bid in at the lowest sell price on the Bid & Offer? And on the flip side, to guarantee a sell must i sell at highest buy price? And then is the difference between the two how satrix make their money? Regards Werner

[Jellyram]

Index moves to slow for CFD. You need to be in a long time to make money on Index but in the meanwhile you pay for the money you are borrowing from the bank and then it eats away all your profits.

[SimonPB]

I tarde CFD's on the STX indices using my lazy system .. works perfectly .. sure last trade went on for months and the cost of carry was 20% of the margin, BUT the profit was over 100% of the margin ..

[#4]

Jellyram is off the mark, Satrix CFD's are a pretty good way to trade the index, providing you are not trying to day trade. Use them for Simon's lazy trading system - very effective. With regards to your buy sell question, the spread is pretty fixed. If you place your buy order a couple of points above Satrix's block order, you might get lucky catching someone who is looking to exit. But most likely your order will only get filled when the index moves below your price and the satrix block sell kicks in

[WernerH]

i wish i could put in screen shots, at the moment there is no sell price on SATRIXRES. what price should i enter a buy? yeah, i plan to use a version of Simons Lazy Trading System, see how it works for me. Werner

[WernerH]

Hi Simon... Yeah, i read that you are leaving / have left SB. Is this correct? where are you going to? and are you planning to stay active in this forum. I am using a slightly customized version of your lazy trading system. One question that i do have for you, as we are only risking 2% at a time, it seems that i could probably buy the underlying instead of a CFD? obviously you can not short satrix without using cfd's. your views? werner

[SimonPB]

market maker typically only arrives at 9.10am .. assuming they not late .. and they exit at 4.50 pm ..

[WernerH]

Thanks... when the trade went trhough i got the following sms. bought @ cfd 5730c & U'lying 5710. I assume that it cost me 5730c. And the 20c diff here went towards SB for CFD. I now see large buy and sell volumes (e.g. 100000shares) i assume that these are the market makers? Sorry about all of the questions, just want to ensure understanding early on. Werner

[Jellyram]

SimonPB. Please be so kind to indicate to me where I can get more information about your "lazy system" of trading. How does it work?

[SimonPB]

go to tickertlk.co.za, group on top left ..

[SimonPB]

yip

[Jellyram]

Many thanks Simon!!