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Drastic change in SSF pricing compared to underlying?

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Regular Contributor
Simon or other SSF fundi. Apologies if a FAQ but how can a June future price have a margin change of around R222 (SOL) compared to the underlying price within a day or two? Sentiment or what? Bring a course to Namibia then I'll stop asking questions.
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12 REPLIES 12
Super Contributor
I emailed OST two days ago with a similar query regarding OML SSFs and havn't gotten a response yet. The SSF price reduced, what happens to the difference?
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Valued Contributor
safex imoplimented a margin change ..
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Super Contributor
When this happens and the value of your SSFs get reduced, what happens to the difference? Is it lost or is it recovered somewhere else?
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Valued Contributor
nah, now we talking about different things I think .. margin is the money you put with safex, this is returned when you close the position ..
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Regular Contributor
Simon. Not sure if you've answered my SOLQ-Jun09 question. Short it at Underlying 29100 and SSF 29278 (ok - stupid move, but I'm used to that). Stop loss a bit tight at 29800 but it's around 10% of my input (incl. transaction costs. Kick in at underlying of 29278 which means underlying changed only 0.61% but SSF by 1.36%??
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Super Contributor
That the 'hidden' costs my friend... nothing for nothing
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Valued Contributor
two things nailed you .. firstly remember the in/out cost of 0.8% of the underlying priced into the SSF price and then the spread hurts as you have to cross it .. basically your stop was too tight ..
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Not applicable
Simon, What commission % does SBK levy and what is the stock borrowing fee on the shorts equation.
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Not applicable
Simon, What commission % does SBK levy and what is the stock borrowing fee on the shorts equation.
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Valued Contributor
we charge 0.4% the value of the underlying on both buy and sell and interest built into the SSF price .. R60 +vat per trade ..
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Not applicable
Understand that interest is built into the price. Is the i in the formula = prime and the s = money market rate??
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Valued Contributor
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