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Online Share Trading

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CFD or SSF

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Occasional Contributor
Humbly requesting some advice from the traders with lots of experience. I am a small investor with an appetite for risk . Which would be the better option on OST, SSF or CFD? Does OST offer stop loss options on both and which route is more cost effective with smaller trades – max 5 contracts (SSF)?
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20 REPLIES 20
Valued Contributor
they be trader not investor products .. that said, CFD, SSF offer no stop loss function and CFD slightly cheaper ..
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Regular Contributor
Simon, why did they remove the stop/loss from SSF. Surely the trader doesnt benefit from this. This is illegal, surely.
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Valued Contributor
not illegal, how would that be so ?? reason is the Safex central order doesn't report back trades or something, so no trigger for stop loss ..
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Regular Contributor
I was out of the loop for 2 years. Been back a year. Prior to that I was able to place stop/loss on SSF's. Is there anything going back two years that I can read up on about Safex and the change in rules.
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Super Contributor
I prefer SSF. Market participants plays by JSE rules. SSF is a listed instrument, with reduced counterparty risk.
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Valued Contributor
it was back in 2010ish .. google ssf/safex/central order book
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Valued Contributor
counter party I agree with, that's a biggie .. but the missing nugget is how the SSF is priced, zero transparacy
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Occasional Contributor
Thanks for all the input. My buddy trades on another SA platform which does have stop loss options for CFD and SSF. I like my SBK OST but I do need to do the Stop Loss thing.
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Valued Contributor
you do get stop loss on CFD here .. tis SSF with no stop loss
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Super Contributor
Simon, the JSE has got an excel based program that allows you to determine the fair price.
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Super Contributor
Just another qeustion on cdf's, why is it that other bank/institutions make more cfd's available on more shares than OST ?
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Super Contributor
if you want to trade futures, trade ALSI futures...can set stop loss
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Super Contributor
I don't trade CFDs here but do with three other parties of which IGmarkets is one, and with them you have a far wider selection, however the margin on some of the less liquid shares is 25%
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Not applicable
@Rams, why - why can I not trade CFD's?
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Valued Contributor
sure, but there are two moving parts, div assumption and interest rate .. hence still a stab in the dark
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Super Contributor
If stops are a worry, you can put alerts on the underlying and manually execute. Probably a wiser way in anycase as it elimates the risk on wild swings which usually recover.
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Super Contributor
@ Skaap, the point was that ALSI futures allows for stop loss unlike SSF
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Super Contributor
@simon, those variables are incorporated within the excel based program. JSE produce a dividend list for each and every company.The user will then slot that div amount into that program.
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Regular Contributor
The problem with alerts are that you're not always with your computer when an alert comes through. Personally, when I came back from my break I lost an unspeakable amount of money because SSF's are not liquid and there's no stop/loss. Now, the best instrument I've ever traded is the alsi. If only the ALSH graph will work most of the time as I use that and the Almi as indicators. I've more than made up for my losses in a short space of time. and all you've got to do is watch the global markets. No technical analys. By the way Simon, I'd like to suggest we have a seminar on the challenges faced by the individual day trader.
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