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Online Share Trading

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SSFs and profit/loss

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kr_pto
Super Contributor
Have been trading warrants and stocks, so this is my first foray into SSFs... so maybe I am just missing something or being dumb; but I still just dont get the way the SSF account info is reported back. I realised it is based (if so chosen) on bid price, but still doesnt make sense to me that IMPQ Sep-07 can show we a daily loss, when the underlying has moved 1.8% and the gearing is around 7. of course once to MtoM kicks in later, it is all fine, but is there not a better way to layout the report/info to make it easier to follow intraday? or am i the only one who finds the SSF reporting system strange?
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10 REPLIES 10
Beep_Beep
Super Contributor
No - i find it very confusing and then you can only go in after 8pm to get a clear picture. I haven't worked it out yet.
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Dilligaff2
Frequent Contributor
Confuses me too! Yesterday my GDF SSF showed a R12k daily loss around 18h00, which then turned into only a R447 debit.....
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Zanzibar
Occasional Contributor
I have the same problem! SPP has now gone up +/- 4 % and all i can show for it is +/- R300 on a 3K SSF. I queried it last night and the answer this afternoon was that the closing prices from JSE was wrong and they corrected it this morning. How can I be sure they did this as I leave for work early and cannot log on before departure. The same is happening tonight. Could SBK please explain how to verify a correction. Happened before on SHF with me and still I don't know if it has been corrected, although error was confirmed. Anybody else with this problem?
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SimonPB
Valued Contributor
I'll speak to the expert on this when he's in.
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Not applicable
Me too - I don't trade SSF because I don't understand this part...
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SimonPB
Valued Contributor
we use the bid if long and offer if short to value during the trading day. Of course this can give some wild numbers if bid/offer values skew out during the day. Now after the closing auction one will often see very low bids or very high offers that will effect your value that is only corrected when we get the M-t-M numbers from SAFEX. Point is that if during the day the bid drops away your long position will look very nasty, butt hat is the reality as that's what you'll be closing out at if you exited at that time.

And yes sometimes the wrong M-t-M price is reflected, but it is corrected when trqding starts again remembering that the M-t-M value is of no trading significance as you can't actually trade that value. So it has to be corrected, or put the other way - it can not be corrected when trading starts.
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Not applicable
Chaps its simple. The prof/loss you see on MTM is based on the bid and not on the last traded value so although you are up lets say 1% if the bid is lower than the +1% differential you might have negative value.Gud luck
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kr_pto
Super Contributor
thanks, the bid part does makes sense (one has the same problem on warrants after market closed for auction). but that aside, the layout and presentation of the SSFs does seem clear to me and in my opinion could do with a redesign next time around.
with regards the out of wack bid levels after market close (both warrants and SSFs). I dont suppose there is a way to change it to show (after market only) the last bid price when market closed? would be more reflective of what the "closing bid price" for the day was (as a kind of equivalent to the closing price. but i am guessing not.
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SimonPB
Valued Contributor
kr!pto, that is the last bid price from whent he market closed (what's left after closing auction). I know it's nasty (I got a DB warrant and they bidf aroudn 70c but after close the best bid is 5c, reflecting some 93% loss), but it's not reality.
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kr_pto
Super Contributor
i assume you referring to warrants here cos of your DB example. but i am not sure that is always the case, as at 16:50 (on some of the Std Bank warrants anyhow) the spread suddenly widens considerably. it seems that this bid price is the one that hangs around until morning (or some other non market maker puts in an order). i do agree that in other cases the bid as at close is the one used. maybe it is just certain anomalies?
no material difference just pity one cant see true position without doing some head calculations. c'est la vie
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