Finding the appropriate leveraged instrument

[Hedgehog]

Hi Simon You have been quite helpful in the past. I think me an a few guys have developed a trading system giving good results, but we now have to find a leveraged instrument we can invest in for longer than 3 months. Warrants have time decay and barriers. We do not fancy margins calls, so no SSF. We want to play the TOPI - is there anything else we can consider?

[barry_1]

pardon me for butting in....what about installments,no time decay,getting the same dividends which are considered tax free as shares etc?

[SimonPB]

ya, instalments .. there is a time decay of sorts (cost of carry) .. but it is likely to be around 1% per month, so very very modest .. and gearing levels generally around 2 or 3 times ..

[#4]

I'm confused regarding installments, first you pay half price for the underlying share, you keep it and recieve complete dividents for the shares. Now after the share has climbed to your wishes, and you wish to cash up and leave;now you pay the other half that you didnt pay in the beginning, and take your dividents and profit generated from rising undelying share. Am I understanding it correct?

[SimonPB]

you can pay the other half .. or you can just sell it back to the issuer and take you profits in cash ..

[#6]

Oh so you sell the shares half price to the issuer at current share price. And they only advantage youve gained was to recieve divi's at full price rate, because issuer buys back at half price.

[#7]

So infact the risk is same as ordinary shares, but u get divi's x 2.

[theyoungster]

CFD'S contract for difference chech out idealcfds.com

[#9]

Then cost of carry for 4 months = -4% cancels your quartely divident income.?????

[SimonPB]

no, you not gettign it .. on the menu == help and education == instalments course ..

You also get the full profit of the share price move, but remembering you only paid half price .. so basic example ignoring divs and cost of carry) share at R10, you pay R5 .. share goes to R15 (+50%) and instalment goes to R10 (+100%) .. heance gearing is 2x ..

[SimonPB]

cfd's same risk, margin calls as ssf ..

[#12]

Ahh I see tnx. and turbo instalment 75%....= 3 times gear

[Hedgehog]

Hi Guys and Simon - Thanks for all the response and debate. We would like to trade an EFT, specifically Top40. It looks like only TOPSKA qualifies, sort of.

[SimonPB]

there are a number of top40/STX40 products to trade .. most are warrants (more then just topska) and also some instalments on stx40 ..

[Hedgehog]

HI Simon thanks - now I feel silly - how do I find the STX40 instalments?

[SimonPB]

I can't find them either, but I am sure I recall some being issued recently .. will hunt around ..

[SimonPB]

nope, seems my mind is playing games with me .. there doesn't seem to be any ..

[Hedgehog]

Gr8 - luckily I can stop feeling silly

[barry_1]

Just type STX40 OR STXRES OR WICHEVER ONE U WANT IN LIVE PRICE!

[boing]

Hi Barry. So are you saying there are SI's for the ALSI40 or not. Also, can anybody give me the code for the 2 knockout warrants and where I can find the knockout levels.