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Changes to SSF Trading

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Super Contributor
Simon with the changes effective from the 14th December per the email as i understand no stops at all on ssf's? This will surely mean that many traders of SSFs will move to CFDs? Why do they want to make these changes?
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Valued Contributor
well stop loss will only trigger over night on the MTM, so yes basically no stops .. as for why, JSE moving SSF to on market, you'd have to ask them as to why ..
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Frequent Contributor
Are there any other advantages to changing to CFD's?
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Valued Contributor
CFD's marginally cheaper trading costs at 0.35% +R50+vat
You trade the spot
Contract size is 1 share per contract (SSF is 100 shares per contract)
You get dividend (or pay if short) and you get it as a dividend
No roll over so no costs there
Downside is important, you take counter party risk as this is an OTC product

OST makes no representation or warranty about the suitability of CFDs for a particular client and prospective investors should obtain independent advice in respect of CFDs.
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Not applicable
Do the changes mean that the extra "margin" STANDARD requested will no longer be applicable?
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Valued Contributor
nope, margin remains as it ..
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Regular Contributor
So all in all, trading SSF becomes risker?
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Super Contributor
I would say so if you cannot put in a stop yes much riskier. Unless someone tells me otherwise i think they trying to push traders away from SSF - not sure why though
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Valued Contributor
it is not about pushing people anywhere .. it is about system changges that have impacts on existing systems ..
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Super Contributor
Sure Simon but with the changes to suit a system makes it less attractive to trade.Its like saying from now on we only making mercs with a reverse gear cause it suits mercedes .... you think anyone will buy a merc
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Valued Contributor
The JSE has changed the way orders are routed to market, no more off screen .. has to go on screen .. changeas are a direct result of that change at the JSE ..
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Not applicable
Come now people, read the email and the posts by Simon. The changes are not changes for the sake of changes. The JSE changed the rules so not OST have to comply, thus making the changes to the system. Being a "live" system coming online the existing features cannot be used as were in the old "off-line system" of doing orders.
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Contributor
Do the changes affect index and commodity futures?
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Regular Contributor
Are they trying to force the casual and closing price trader out of trading SSF?
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Super Contributor
Missing the point CPS... I never said it was OST making the changes...The fact that you cannot put in a stop changes the rules of trading ssf quite drastically and imo many SSF traders would move to another instrument.
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Super Contributor
So trade spot forex with guarenteed stops 24/7.......ssf were always a risk even with stops if the Dow crashed 400 points after our close your stop would be useless anyway.....why leave a position open overnight wityh no protection....makes no sense to me at all.
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Valued Contributor
ninja, maybe coz there are different ways to trade and manage risk ??
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Super Contributor
trading with no live stop 24/5 to protect you is very very risky......but as you say everyone has a different risk profile.
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Valued Contributor
disagree with first point .. risk is about how you manage it .. 10-100x gearing on currencies is too my mind insane .. a nice gentle equity position is perfectly managable risk to me, even if only tradable 8 out of 24 hours a day .. I always trade with the understanding that the underlying could move 30% against me before I can exit .. it is about how different people manage the risk ..
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Super Contributor
i agree ninja actualy forex makes a lot more sense to me, wont trade ssf again without a stop loss and i much prefer forex trading to any shares or index, forex seems to work very well with technical analysis and the moves in forex are not as eratic as other instruments.
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