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SimonPB
Valued Contributor
nah, I can tell you any half decent broker in SA is 100% hedged ..
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Simon, you mentioned previously that you never leave an ALSI contract open overnight. Yet you do not have a problem leaving cfd's on indexed futures open overnight. What is the reasoning?
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can't speak for simon, but an Alsi contract is highly leveraged, 1pt = R10. If you leave it overnight, a simple 200pt gap will cost you R2000 per contract. And markets have the potential to gap way more than that. CFD's on index futures, I don't know where you trade these (maybe IG?), but a CFD on say Satrix, doesn't carry nearly the same level of gearing, so you can use it for trading trends on a daily timeframe.
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Ok, thanks. Just thought there was perhaps another reason besides the gearing ratio that made ALSI more riskier.
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SimonPB
Valued Contributor
ALSI is slighty higher geared, around 10x vs. 6x .. but really it about different systems ..
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Thanks Simon. But if your stop loss is based on a percentage drop / rise, surely the difference in gearing between ALSI and e.g. stxcfd should not influence your decision of holding one overnight and not the other?
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SimonPB
Valued Contributor
stop loss is based on chart, not % .. and risk mnagement means where ever I put the stop I only risk same rand value
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shizz
Contributor
Which platforms do you guys use? Anyone here use DWT?
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