Insurance??

[Kat_1]

Hi Simon Can one insure money invested on JSE? If so how does one go about it? Just curious - read a book about it, although no mention was made of how to go about it! Regards

[SimonPB]

insuring money on the JSE? Against what? Your money in your tarding account is safe as are your shares (this is secured by the JSE).

If you're looking to ensure against losing money by way of shares going down, the only way is with put derivatives on the stocks and/or indices.

[louisg]

Simon please elaborate on "our shares secured by JSE". Are we covered against hackers, fraudsters, etc.?

[SimonPB]

if SB goes bust your shares/cash in your trading account are safe (but the process could take years before you get them back).

This site is pretty much hack proof being in 128 bit cryptology and the risk is you use an easy to guess password, loose (give away) your password or your PC gets hacked with something like a keyboard sniffer. If somebody does get into your account all they can do is buy/sell or transfer money back to the account that the money came from (your account). If they tried to add a new account to pay money into FICA would trip them up.

So in sort we have two risks - both us. We loose our password or buy/sell the wrong stocks.