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Futures close-out

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Not applicable
What day is it this week?
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19 REPLIES 19
john_1
Super Contributor
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Not applicable
What is the effect usually? Does that translate into selling & a drop in the market?
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john_1
Super Contributor
higher volumes, possibly higher volitility..dont trade on thursdays and dont have any warrents open on that day.
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SimonPB
Valued Contributor
why not trade and why not have open warrant positions ?? I have an open warrant position and if not stopped out will keep the position ??

with respect, you're assuming there is only one way to trade ??
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Not applicable
Simon - If I understand John correctly, the larger volumes of positions being closed will result in a drop in prices & yr stops could force you out of yr positions prematurely. I was hoping to revitalise my Warrant trading days this week, but will now wait until after the New Year babelaas has worn off.
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SimonPB
Valued Contributor
larege volumes don't mean a drop .. it doesn't even mean a rise, could go sideways (and that has happened before) .. depends if market is net long or short or neither ..
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john_1
Super Contributor
what I was thinking was simply that automated price updates on the matrix stop during close out...best to know this ahead of time...so one is not able to trade during this time without a phone call...thats all.
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SimonPB
Valued Contributor
ya, that be a fair point ..
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saash
Super Contributor
Simon - tell me again what happens to futures during the close out? I forgot, and have some at the mo that I don't wanna get out of.
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SimonPB
Valued Contributor
we roll them today ..
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saash
Super Contributor
Yes, if I remember correctly - I get new ones at a new rate of interest, hey. So it looks like I've made a loss for the day.
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SimonPB
Valued Contributor
nah, that's merely the trade price .. your loss for the day is costs and stock moves ..
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eddy66
Super Contributor
Please explain to me why I've got AGL March futures when the close out is only on thursday? I didn't buy or sell anything and it looks like it rolled over already??
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SimonPB
Valued Contributor
as per the mandate you accepted, the email you received and the announcement on the home page .. we roll futures contracts two business days before close out ..
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djw
Regular Contributor
You see - OST is like an insurance contract - you never read anything - have what you want until it bits you back
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SimonPB
Valued Contributor
an just like an insurance product, you should read the comms that they send you .. otherwise you kick yourself in the @@@ ..
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Mardo
Occasional Contributor
One thing I cannot understand is why the impact on Thursday when most SSF trading partners have already rolled there SSF's (Std Bank yesterday) for instance so what really happens on the close-out is it just SAFEX that rolls ?
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SimonPB
Valued Contributor
well SSF's are on SAFEX, but SAFEX is 90% ALSI futures ..
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Not applicable
What time this afternoon?
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