Simon, me,me,me again - Questions of the month!

[#1]

1. Why are there 42 shares in the TOP 40? 2. Why are there CFD's on shares but not necessary warrants on those same shares? 3. How can I lose more money on a CFD/SSF than what I initially spend? You will just sell my current position if I get a margin call, till you have sold them all to cover the margin calls and then close the position.

[Levitt]

On the cfd question, let's say you have a R4500 margin requirement on you position and R2500 cash in your account, if the position goes bad it will first start deducting on cash, once that's gone it will deduct on your margin, so if both empty you made a R7000 loss. Otherwise you should have moved the remaing cash to another account, risking only your initial margin.

[SimonPB]

because mondi and investec are in the index twice wih the ltd and plc stocks ..
coz different people decide ..
coz if the marketing gapping or moving with speed we may not be able to close you out in time .. more of an issue with brokers who only do MTM at day end, we do it in real time so less of an issue ..

[#4]

So the bottom line is that I will only lose more than my initial purchase amount if I have spare cash in my trading account. Hmmm, I open a seperate CFD account that contain an exact amount of money to cover my initial purchase. The same goes for purchasing SSF's. It's like having an account stop-loss, instead of a standard stop-loss and when that kicks in SBk will manage my finances for me, auto selling my CFD contract and putting the spare bucks back into my account.

[#5]

Here is the main question: How far/long will SBk wait before they make a margin call?