SSF

[mosismoke]

Can anyone give me a simple explanation of Single Stock Futures?

[JDT]

Help and education -> Futures

[#3]

The simple explanation of futures.... Standard Bank borrows you money to trade. You only pay a refundable deposit of about 20% for the entire purchased shares. If you win, you take all the profit. But if you sell at loose, then Standard Bank deducts the losing amount from your deposi. I advise you NOT to buy any SSF until you fully understand the risks involve on this derivative product, otherwise you may face the music of a bank taking your properties and house to recover from your loosing trade :-(

[Champ_golfer]

Bullocks Jam jam, they Auto-close you out if u loose 33% of your Deposit as a safeguard (1/3), They will never take ur house or cars etc... Depending on gearing, (money they borrow you) u can make up to say 5-8 x the share % going up or down

[asylum]

I thought they only auto-close out if you dont have enough cash in your trading account????????

[Champ_golfer]

Yes asylum, but u will never loose all ur money in any event

[SimonPB]

you can absolutely loose more then your margin (in other words more then 100%). It would require a market gapping against you (or opening well against you or a lack of buyers if long) so that when we close you out you at a loose of more then 100%. And you are liable for the extra losses.

Also when people get a margin call many merely add extra cash which is largely madness. This means that they have already lost and are now adding to a losing position. In the olden days a margin call was an event of major embarassment as it exposed horrid trading. Now it seems to be an opportunity to merely hang onto a nasty trade?

[mosismoke]

Thank you guys. Any book that you can recommend?

[Ega]

The Bible

[#10]

Little Noddy Goes to Toyland

[Preston]

Sexual position of Toa.

[asylum]

you dont need a book there is plenty to be found on the net start off with the futures online course thats available on this website its quite good and then ask question on the forum.

[jamoo]

hey, but please don't trade futures until you understand the details. it can be very tricky.