Of late i have had a bad experience with Instalments.I bought the Vodacom Instalment about four months ago and my fault I know did not examine the expiary date well.For some reason I thought its expiary was a month later.Well it expired two weeks before the decllaration date.Sure I had made some profit but had to wait ten days for the proceeds tobe payed into my account. Seems there is no new Instalment to take that ones place,only Ned Bank seems to be continuing with Instalments.This is a great pity.
I have had a good response to my new e-mail address form members and othere that we should continue the free club.Please be patient .I shall reply to all in time!Enough members feel the quarterly reports on the top 40 are of value and then each of you can choose your own type of derivitive.Also you feel that Naomi shoild play a greater role.As one blog cannot accomodate all the articles we have decided to try to link them together.You can also express your veiw here.
Hi Barry, of recent time i have moved away from trading installments with standard bank. I found that they are more interested in CFD. Trading installment with Nedbank has been a pleasure , some of the benefit , Nedbank installment has a high delta than SBK, so you gain more when price moves,although i found that Nedbank installments are not accurately reflected on SBK websites. Nedbank trading desk is teeming with dedicated individuals who are also willing to help you. Nedbank is extremely transparent when pricing in variables into installments. Standbank loss , Nedbank gain, this is a competitive enviroment and CFD's are for fools. I will never trade an instrument that are not actively traded on the JSE.
CFD is a unlisted instrument and my issue revolves around legal right of recourse. I had a recent incident where the JSE watchdogs was very relucant to investigate the lack of market markers /pricing thereof for a SSF. Do you think that the JSE wacthdog will investigate any issues revolving around an "unlisted instrument".
Provided you have the disciplive, CFD'S are far cheaper to carry then instalments. Instalments (I wish they used two l's) have a complex structure which links them to an underlying warrant arrangement. Eventually you wind up carring an upfront interest "balloon" on the issue credit while tracking a delta adjusted value. You may also pay the built-in put option costs. Add to this an onerous spread on the dedicated market for the instalment (which the issuer pockets.) Instalments make the most sense in a rising market.