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topi, stx40 etc confuses

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If I buy topsbi, topsbs etc (underlying share is topi) where do i find value of topi? Can i use stx40?
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12 REPLIES 12
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Frequent Contributor
Hi Eddie... TOPI is not a share, it is an index and measures the relative performance of the top 40 shares. You can get it under "Key Market Statistics". However, and please don't take this the wrong way, keep away from warrants in the beginning. Trade normal vanilla shares to begin with as warrants is very different (and dangerous) beast! You will lose your money... if you don't have the backing of serious technical analysis and deep understanding of how the markets work under the belt. There is no such thing as beginner's luck in the markets.
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I was a financial advisor for 10 yaers or so ans apply a longer term strategy to warrants. I wrote my own program to compare performances of shares. I put in 15000 and within a bout 5 months was up at about 75000 (60000 profit) Unfortunately i kept on buying as agl fell and fell and lost a lot there but am still well above my original 15000
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Frequent Contributor
Well that makes you a market expert then... just make sure you remember TOPI is an index.
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It is not really that i thought topi was a share, it is that when you look up under topsbi it says the underlying share is topi (i was quoting from this website). I was hoping someone would enlighten us on where to find the underlying share value (perhaps stx40)
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I share in your confusion...mainly because the matrix values quoted do not correlate with the TOPI index value. I remember seeing somewhere on the forum that the value the warrant uses is the SSF value of the STX40... could be wrong though, but it definately is not the TOPI index value directly. An observation rather than an opinion!
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Valued Contributor
top warrants are hedged off the ALSI futures, so that what the matrix references against ..
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Go to your watchlist,where you find ADD SHARES etc,click on add indeces and select top40 tradeable.Your point on longer trading strategy doesnt make sense as warrants are traded on short time periods else the time decay will get you.
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So how do you get to the ALSI futures value?
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I usually traded within two weks or so and have tried both short term trading and longer term. Sometimes one of these methods is suitable and sometimes the other - depends if market goes in straight line for a week or two which it was doing a few months ago.
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Super Contributor
From an email that Brett Duncan sent me on 3rd Dec last yr
3. Access to live futures prices: This is a difficult one as we have requested for a while now to be able to provide lives safex prices on our warrants website. This was a problem for the JSE due to the fact that this a public website with open access and they only provide live prices to an audience where they can know the exact number of viewers and then charge a subscription fee per user - which would have been prohibitive. We have however negotiated with the JSE to get permission to use the prices and are working on the feeds to do this; I hope to have this up and running in the New Year.
4. The difference between the spot price of the Top40 and the futures price: This has been a problem for many traders as they look at the spot level of the Top40 and then get confused as the matrix price is based on the Top40 Futures which trades at a higher index level. For anyone who trades in SSF's the nature of the futures price being above the spot price is clear as its a function of the time period till expiry, the prevailing interest rate and the dividends expected over the period. The reason we hedge in the futures and not in the spot is to avoid having to try and buy each of the underlying 40 shares that make up the Top40 every time we trade in a warrant. Instead we just hedge in the Top40 Futures which is the most actively traded future on the local market.
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Thanks dilligaf...I thought that maybe I could be clever and use the STX40 SSF as a proxy for the ALSI Futures price...however no market-made for some reason, so no price.. back to guesswork
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