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Cost of SSFs

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Not applicable
Please tell me if it is worthwhile to do intraday trading with SSFs.It seems to me that the cost is about 1% +R120/day[for buy +sell].Thank you
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12 REPLIES 12
theyoungster
Super Contributor
why R120/day??
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R60 to buy and R60 to sell.
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Not applicable
Don't forget to add the extra 2% of the daily transaction range for the spread (1% for buy & 1% for sell), and then the percentage of the daily transaction range that you are prepared to accept as risk, and then tell us if it is worth it. A simple answer, IMO, is no
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DWT securities charge R10 per contract per trade on TOP40 futures.. in other words after one point you already in the money
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How does PSG costs compare? any one dealt with them? they are running a SSF competition with a starting bal of 10k costs should be quite reasonable?
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who is dwt?
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absolute rubbish that you will be in the money after 1 pt. You still have to beat the spread
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_Marco_
Frequent Contributor
Can someone please help me out. Pretty new to ssf's as well. When buying the ssf, for example, i bought anglo gold @ 292. It's now trading @ 298. However on buying the ssf contract i noticed that even though the underlying was trading @ 292.50 on the open market, my futures contract was indicating a loss of -R400. Brokerage was only about R68 so i am uncertain as to where this -R400 comes into play. I haven't had time to go through the educational brochures but i will try to get through it at the end of this week, if someone could just indicate to me where this -R400 comes from. If i take my gearing ratio x (2%move in underlying) my profit % taking into account gearing should be round about 11.7%, however if i take the profit it is currently showing it's in the region of about 7%. So im guessing this -R400/-R450 is the difference.. what is that?
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_Marco_
Frequent Contributor
Think i figured it out.. taking the situation where i bought the futures contract when anglo gold was R292 on the open market and using the current market price of R298. 2.05% - 0.80 = 1.25% 1.25% x 5.71 = 7.14% 7.14% x Initial Margin = profit/Loss Is that the correct way in calculating it? I'm assuming this 0.80% is the difference between what std bank will buy/sell. If anyone can confirm i'd appreciate it.
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SimonPB
Valued Contributor
friendly advice .. close your position and read the docs .. when you know the product backwards enter again .. the 0.8% of underlying value is our fee and is in the spread .. also in the spread/futures price is interest and any dividend protection ..
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Not applicable
Yes of co***** the spread ,if you want to get that technical now, which is 5 to 10 points normally
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