To Simon PB, Futures P/L

[#1]

I started shorting INL at 47.39 and continued to sell more ssf contracts all the way up to 49.99 (-19 contracts in total). The current INL price is 46.84, well below my initial entry point and yet my P/L for this trade in my portofolio shows a total loss of more than R2000 .... What's the deal here?

[#2]

Wow, something is definately wrong here... by my calculations you should be at least R5000 into profit (dependending on the levels u went short at up to 49.99). Maybe you should contact the deriviatives dept... here' their number: 0800111780

[#3]

You need to look at the BUY futures price. Even though you sold SSF you do not get the SELL futures price when you BUY back. It is confusing. Even then you till should not be down R2000 BUT you will not be UP as much as you think

[#4]

Forgot to add....remember each time you trade you are paying Markert Makers commision. Depending on your cost the commision could run around R1000 - R1300. That eats into your profit as well.

[#5]

For example, I shorted INL on Friday at underlying price of R51 - my futures price was R48.87. Sold 20 SSF contracts. Today I bought 20 SSF contracts of INL at underlying price R46 - my futures price was R47.14. So my profit was around R5500. But bottom line I made R5 per share on 2000 shares - around R10K. Profit is eaten up by Standard Bank. Just something I have learnt in ,my very short SSF career.

[#6]

to correct previous price. Futures price on initial SELL was 49.87 and on BUY 47.14

[#7]

Skippy - you got me going here. Simon it will be really interesting to see your explanation of this. SELL 20 INLQ 5100 4987 BUY 20 INLQ 4600 4714 Difference 500c 273c Profit R5300 Now lets look at my previous trade and what would've happened if it had gone against me. SELL 20 INLQ 5100 4987 BUY 20 INLQ 5600 5714 Different 500c 773c Loss R14300 Look at the difference here. Profits are halved but loss are almost doubled. A little unfair right ? Simoncan you comment here?

[simps]

Simon I will I am also very interested in your response to SAUL's quetsion because I trade CFDs and was about to switch to SSFs

[SimonPB]

I am out of the office, contact the call center 0860 121 161.

Costs are the R60+vat plus 0.4% of the underlying share value buying and selling. 20 contracts at around R50 is underlying of around R100k. An interest on the loan amount.

[#10]

I worked this one out, remember that INL went ex div on Monday and this amount (%) will not be included in your p/l.