phone trades

[boing]

How effective are the phone trades with standard online? If there are high volumes on the JSE and the site is slow and I need to get out of a warrant quickly, is that the way to go? Or is there a massive queue at the call centre then.

[Tango]

if it's all gone to hell you'll probably find that the market-maker has triggered it's limits and dropped out of the bids, so even if you get through to a trader at SFM you may struggle to get out of the position. Get hold of all the warrant-issuers numbers and keep them handy - you're more likely to need to call them than SFM if things are moving fast

[Beep_Beep]

I have found reversing a stoploss or trade etc by phone very effective and the staff very helpful.

[boing]

Hi Tango. Can the issuer of warrants also drop out of the bid? I thought it can only drop out of the offers. Let's assume I am dealing with DB and phone them to make a price on one of their warrants when things get hectic. I am trading on the SB platform however. What will I have to do to make sure that the trade goes through on the SB platform at the price and volume that DB and I agreed on.

[SimonPB]

the issuer is always a buyer and can decide not to sell (for a number of reasons). But sometimes the buy or sell price disappears for one of many reasons (off matrix, power failure, brain failure, telkom fail, etc.).

[john_1]

Boing.. DB are notorious for falling of the page just when it matters most, And always phone them as they keep the spread wider than it should be. they will almost always closes it down a cent or two if you phone.

[Tango]

I was thinking of DB when I made that post.. ;)
Apparently they have tightened the spreads on their waves, and now offer the same spreads over the phone and online. Their market-maker software has triggers that go off when there is very high volatility or an extreme drop. I guess it's designed to prevent a run through the market-depth and stops getting triggered if something crazy happens on the underlying. If they drop out of the market, you can call them up, they will give you a figure for their fair value. You place your trade at that figure, and they will take your trade when it appears in the market. They will do this even if the market-maker software is not making bids and offers.