35854 replies to this topic

[Vertebrae]

 

[Vertebrae]

OK you suckers - suck this-

Alphabetical order of indicators...

%Chg, %R, Absolute Breadth, Advance-Decl Line, Advance-Decl Ratio, ADX, Average True Range, Comm Channel Index, Correlation, DMI, Linear Reg Curve, Linear Reg, Moving Averages (1, 2, 3, Lines), Price Osc, ROC, RSI, Stochastic (Slow, Fast), Strategy Equity, Swing Index, Time Series Forecast, Typical Price, Ulcer Index, Volatility, Std Dev, Weighted Close, ZigZag %, ZigZag Pnts

Relative importance is relative...

 

[AJS]

Who said I was in my right mind, I can choose left if I want to...

 

[Vertebrae]

And with the refreshment (of another 375 Billion Sterling and fixed zilchland rate)

Who in their right mind would go short?

Who said I was in my right mind, I can choose left if I want to...

 

 

 

[ZoomZ]

T2T

 

pleasure..hope i helped.

 

btw the interest on index futures is a silly concept...because an index future is simply 'pregnant' with a quarter of a years interest rate (whichever they use)

 

and, the new contract, normally within days or even hours, dissipate this interest amount..it is why I am normally short a new contract because it normally  I emphasis free points to the downside...i.e. the new contract falls to precisely the old contracts closing auction price...normally...normally.

 

anyway yes I do trade term velocity...but i do not reco them as an application provider..this is  velocity trade i am referring to. it is my personal opinion....and if other people have good experience with TV (velocity trade) then fine...good for you...i do not....incidentally they have just changed to protrader btw...but it is a very similar application....i would recommend an offshore provider for offshore indices/stocks etc...they are cheaper and normally robust in up/down time. I will not reco my other offshore providers. DWT does however utilise protrader/velocity trade as their offshore  offering/arm.

 

Term vel/protrader has no fees except for some indices like the IT40...otherwise its all in the spread...(well they charge R70 a month for offshore  data feed ). I do not trade local /offshore stocks on Protrader but they are there and available. Incidentally margin for a mini ALSI on protrader is R450 last time I looked.

i do however recommend DWT securities in CT because they are simply fantastic...the people there  are amazing...and if you are a good client they offer discount on margin on intra day positions...for overnight you must have full margin of course.

 

Roger that over and out.

 

 

[TradeToTrade]

T2T

 

firstly go here

https://securities.s...st/docs/cfd.pdf

 

or here

 

https://www.investec...eets/wi_cfd.pdf

 

read here an excerpt of another site

--------------

Q.: How is interest charged or credited?

Share

 

A: CFD positions held overnight are subject to overnight financing. Interest is calculated and charged on a daily basis on the contract value. However, for a short contract for difference position, a conventional share sale is simulated so interest calculated on a daily basis will be earned rather than paid. The rate is usually calculated at a margin above (for long CFDs) or below (for short CFDs) the Reserve Bank's interbank overnight cash rate plus/minus 2 to 3 per cent.

 

------------------------------

secondly, its is the nature of holding the underlying in a CFD...actual shares are bought/sold 'albeit synthetically' this real value (in holding the underlying long or short) is held in perpetuity until thee position is closed (until a countering and opposite trade entered)

 

thus interest is received (short) or paid daily (long)

 

so its by virtue of the nature or  DNA structure of the instrument that interest plays a role as it does

 

futures are cash settled as as such do not really have any 'underlying' attached to the instrument although it mimics the basket of stocks...in terms of SSF..it is slightly different.

 

interest on margin is another thing altogether...as Vert referred to. Interest in this case is not the same thing.

again...clear as mudddd. huh.

 

Thanks for the info ZoomZ, it's all making more sense now.

 

You mentioned you traded international markets using CFD's. If you don't mind, which trading platform do you use? (is it Terminal Velocity).

Also, who do you trade through that offers this? (which broker?)

 

Much appreciated.

[ZoomZ]

T2T

 

firstly go here

https://securities.s...st/docs/cfd.pdf

 

or here

 

https://www.investec...eets/wi_cfd.pdf

 

read here an excerpt of another site

--------------

Q.: How is interest charged or credited?

Share

 

A: CFD positions held overnight are subject to overnight financing. Interest is calculated and charged on a daily basis on the contract value. However, for a short contract for difference position, a conventional share sale is simulated so interest calculated on a daily basis will be earned rather than paid. The rate is usually calculated at a margin above (for long CFDs) or below (for short CFDs) the Reserve Bank's interbank overnight cash rate plus/minus 2 to 3 per cent.

 

------------------------------

secondly, its is the nature of holding the underlying in a CFD...actual shares are bought/sold 'albeit synthetically' this real value (in holding the underlying long or short) is held in perpetuity until thee position is closed (until a countering and opposite trade entered)

 

thus interest is received (short) or paid daily (long)

 

so its by virtue of the nature or  DNA structure of the instrument that interest plays a role as it does

 

futures are cash settled as as such do not really have any 'underlying' attached to the instrument although it mimics the basket of stocks...in terms of SSF..it is slightly different.

 

interest on margin is another thing altogether...as Vert referred to. Interest in this case is not the same thing.

again...clear as mudddd. huh.

[stoffels]

Thanks,

 

I am really surprised that CFD's require interest to be paid or received based on your exposure, yet futures do not. Both require you to put down a margin for access to leverage (exposure), therefore my assumption would be if you hold overnight, you would be paying/receiving interest if you're long/short respectively.

 

Anyway, thanks for the confirmation (even though the reasoning behind this makes no sense to me, there is probably some underlying mechanic with the two products that I am not aware of)

 

cheers.

Interest is build into futures price - you will see it converge to underlying at expiry 

[TradeToTrade]

T2T

 

sheesh...unhelpful bunch here huh?

 

yah, local CFD's are expensive but on offshore markets (the one's I trade) there is simply the spread (i.e. no ad valorem brokerage) and yes 'implicit' interest compression but i find this insignificant.

 

So indeed, alsi is as you say is a flat (relatively cheap) fee plus VAT round turn...that's it.

 

There is 

I dont know if peope are  trading a CFD on Alsi?? It would make no sense if they arre considering one can trade ALSI sans brokerage, and as above.

 

Good luck chommi.

 

 

Thanks,

 

I am really surprised that CFD's require interest to be paid or received based on your exposure, yet futures do not. Both require you to put down a margin for access to leverage (exposure), therefore my assumption would be if you hold overnight, you would be paying/receiving interest if you're long/short respectively.

 

Anyway, thanks for the confirmation (even though the reasoning behind this makes no sense to me, there is probably some underlying mechanic with the two products that I am not aware of)

 

cheers.

[Vertebrae]

Intraday high looks unbeatable - heave away whilst take a short nap

[REDorBLACK]

eyeing that gap? 

Rule of the market....all gaps close eventually..ok 99%

[Motion Picture]

eyeing that gap? 

[ZoomZ]

T2T

 

sheesh...unhelpful bunch here huh?

 

yah, local CFD's are expensive but on offshore markets (the one's I trade) there is simply the spread (i.e. no ad valorem brokerage) and yes 'implicit' interest compression but i find this insignificant.

 

So indeed, alsi is as you say is a flat (relatively cheap) fee plus VAT round turn...that's it.

 

There is 

I dont know if peope are  trading a CFD on Alsi?? It would make no sense if they arre considering one can trade ALSI sans brokerage, and as above.

 

Good luck chommi.

 

[Vertebrae]

Brokerage cost on entry and exit

Interest on exposure

What am I missing?

 

Any related broker will tell you and/or provide you with the details.

A full contract requires a full margin. If you cannot provide full margin you can borrow.

If you borrow you pay at their interest rate.

If they owe you then they may even pay you some interest.

[TradeToTrade]

Hi Alsi traders,

 

I presume most of you trade the ALSI intraday and are flat every night. But in terms of holding positions overnight, are there any costs involved other than the margin?

 

The reason that I ask is that im finding swing trading CFD's with a +- 1 month duration is extremely expensive in terms of costs. I see all this promotion from brokers at how cost effective CFD's are to swing trade but I just don't see it. It varies by broker, but in general you have:

 

Brokerage cost on entry and exit

Interest on exposure

 

In terms of futures you only have the brokerage cost on entry and exit, which is much less when compared to CFD's in terms of your exposure vs cost. There doesn't appear to be any overnight interest on exposure (at least none that i've seen on brokers websites)

 

For a 1 contract ALSI trade you're looking at about +-R20 to R35 for the round turn.

On the other hand for a CFD trade with a comparative exposure to 1 alsi contract, you are looking at several hundred rand of costs for a swing trade that lasts a few weeks.

 

Please could someone comment if there are any 'overnight interest on exposure' costs for the ALSI as is the case for CFD's. If there is then of course all of the above doesn't apply. But if there isn't, then im finding it hard to justify the high cost of CFD's.

 

What am I missing?

[Vertebrae]

When all is useless

Rem: Good news for economies is bad news for ZIRP

Rem: Everything with a board of directors has been (is still being) overpriced due to ZIRP and ZIRP effect contagion

Rem: Mean reversion will always have its day

 

[gannet]

The level crossing is holding her up ... possibly that's it for the day ... I'm short and very nervous

 

Just a smash and grab. Thank you Signor Fib

[gannet]

She must now just zoom up already! 

 

The level crossing is holding her up ... possibly that's it for the day ... I'm short and very nervous

[Motion Picture]

Dow/Spx/Nasdaq showing strong daily positive divergence (RSI upper right corner) so they would have never broken down with this setup...IMO train is gonna keep running!

 

NFP figures should fuel it!

 

A

 

She must now just zoom up already! 

[gannet]

Will the area around 48130 become a level crossing for the train?

 

We'll soon know ... very close