35854 replies to this topic

[delta66]

ave down @43625

[BBW]

Hi BBW, just remember you would be getting some interest on your IG Cash shorts but also be charged any dividends on those shares!

Yes, a headache again this afternoon; luckily only 9 points, as I'm still VERY short (for a long time now). Trading daily longs and usually try to offset the divi by going Cash and not futures on dividend days, IF I feel the trend is up. Otherwise I maar take the loss.

[OceanWalz]

Yes, thank you very much, appreciate your effort, P. I just think (???) the end effect on my cash balance is better trading long the futures and short Cash. I don't think the spread difference really has a huge visible effect on my profit and loss limits, but I could be wrong (in the very long run)?

I mean of course when keeping positions longer than a day.

Hi BBW, just remember you would be getting some interest on your IG Cash shorts but also be charged any dividends on those shares!

[BBW]

It does have an effect.

 

Example if TOP 40 futures was 43900 and Alsi underlying was 43600 at end of yesterday then it means 300 points was added to futures for dividend and interest.

 

Come today morning and if underlying is exactly the same at 43600, bet your bottom dollar the Top 40 Futures will trade a few points below 43900 as interest is deducted daily from the contract.

 

Understood?

Yes, thank you very much, appreciate your effort, P. I just think (???) the end effect on my cash balance is better trading long the futures and short Cash. I don't think the spread difference really has a huge visible effect on my profit and loss limits, but I could be wrong (in the very long run)?

I mean of course when keeping positions longer than a day.

Edited by BBW, 09 May 2014 - 11:10 AM.

[Vertebrae]

Short on T40(F) @ 44000 target 43840 for entry to minor 5

[Polly]

As for time decay, so the difference between the 2 becomes smaller till they're the same at the end? What will (should) happen if I keep a contract at expiry?

Your broker will just renew it to the new Alsi futures contract.

 

Current one is Jun14, so will renew to Sept14 which will in all likelihood add about 360 points to the price for new 3 months interest and dividends.

[Polly]

Yes, I understand that (a bit). But TRADING it does have an effect, if keeping overnight?

It does have an effect.

 

Example if TOP 40 futures was 43900 and Alsi underlying was 43600 at end of yesterday then it means 300 points was added to futures for dividend and interest.

 

Come today morning and if underlying is exactly the same at 43600, bet your bottom dollar the Top 40 Futures will trade a few points below 43900 as interest is deducted daily from the contract.

 

Understood?

[BBW]

Top 40 contracts has interest and dividends built it...

 

It has time decay.

 

At end of contract it meets up with IGs price or Alsi top 40 underlying.

 

No difference as to you paying Ig interest or trading the Futures top 40 from an interest point of view.

As for time decay, so the difference between the 2 becomes smaller till they're the same at the end? What will (should) happen if I keep a contract at expiry?

[Roundtree]

Just to be clear, I didn't trade any of those levels I mentioned earlier. I was just sitting here watching thugs at work.

[delta66]

long 43700

[BBW]

makes absolutely no difference during SAFEX trading times..

 

Only makes difference when IG trades after hours...bigger spreads and spike stop hunting.

That's why I NEVER use stops; learned the hard way!

[BBW]

Top 40 contracts has interest and dividends built it...

 

It has time decay.

 

At end of contract it meets up with IGs price or Alsi top 40 underlying.

 

No difference as to you paying Ig interest or trading the Futures top 40 from an interest point of view.

Yes, I understand that (a bit). But TRADING it does have an effect, if keeping overnight?

[Polly]

Oh thanks for pointing that out, I see what you mean; never realized, so they do score in the end? I just wonder whether it really makes a difference to one's trading in the end?

 

makes absolutely no difference during SAFEX trading times..

 

Only makes difference when IG trades after hours...bigger spreads and spike stop hunting.

[Roundtree]

Hi R, What is your view for today? I closed some of my longs from yesterday for a profit. With a stronger Rand and Naspers down 1% i am not sure if i should be long

 

 

If we don't reach 44440 this afternoon tomorrow may be a very painful day for those who are long; we may gap down to 43868 and slide down!  

 

The question I'm asking myself is why aren't the professionals buying 44105? Are they eyeing 43730? I think so.

 

Be careful out there fellas.                                                  

Hi B,

 

Yesterday I mentioned that the professionals had to buy 44105 first before going up. This morning that's exactly what they did; look at the chart. That spike from 44102 was market manipulation at play; they were selling into triggered stops and opening short positions

 

My system this morning gave me a selling level of 44372, which they (professionals) reached. So they did open shorts, I think.

 

I see a low of 43798 and that's where I've placed my buy order. For a short entry, 44281 seems to be the right place to offload what they bought after the spike and quick down move. The question is do they go up first then go down to buy? I may be wrong but my money's on 43798 first then up to 44281. Remember, that what we are trading today was planned yesterday. So we may not reach these two levels until Monday morning.

 

Happy trading, brother.

[Polly]

BBW..yes, overnights T40F is better from my understanding - daily or single session time frames T40Cash. diff in points between the 2 products is cost built into spread on IG side

 

IG spread mostly 10 points = R100.00...no other dealing costs

 

Top 40 futures ..Dealers charge R20 a contract  to buy or sell but buying and selling spread much smaller..+- 4 points = R40.00

[BBW]

BBW..yes, overnights T40F is better from my understanding - daily or single session time frames T40Cash. diff in points between the 2 products is cost built into spread on IG side

Oh thanks for pointing that out, I see what you mean; never realized, so they do score in the end? I just wonder whether it really makes a difference to one's trading in the end?

[delta66]

out and long 43730

lol..stopped out in the black

[Polly]

But does it make a difference (minis)? The one SEEMS to be a copy of the other, although I find the points difference to vary a little over time, but mostly in the beginning and end of the contracts; rest of the time I can't pick up a difference?? 

Reason I'm actually asking is that I've now changed to doing my longs on the futures, in order not to pay interest, should it be necessary to keep it overnight, something I never thought of before (as I don't REALLY understand how futures work). Does it make sense? 

I'm just hoping not to keep a big position come end of the contract, as I don't know what will happen then? I will try and keep a small position though, just in order to get a better idea of what to expect in future and what exactly happens then.

Top 40 contracts has interest and dividends built it...

 

It has time decay.

 

At end of contract it meets up with IGs price or Alsi top 40 underlying.

 

No difference as to you paying Ig interest or trading the Futures top 40 from an interest point of view.

[delta66]

BBW..yes, overnights T40F is better from my understanding - daily or single session time frames T40Cash. diff in points between the 2 products is cost built into spread on IG side

[BBW]

hi there BBW..prefer the "cash" as i'm a day trader.  mini contracts(ZAR10) on flat days and micros(ZAR2) during high volatility sessions

But does it make a difference (minis)? The one SEEMS to be a copy of the other, although I find the points difference to vary a little over time, but mostly in the beginning and end of the contracts; rest of the time I can't pick up a difference?? 

Reason I'm actually asking is that I've now changed to doing my longs on the futures, in order not to pay interest, should it be necessary to keep it overnight, something I never thought of before (as I don't REALLY understand how futures work). Does it make sense? 

I'm just hoping not to keep a big position come end of the contract, as I don't know what will happen then? I will try and keep a small position though, just in order to get a better idea of what to expect in future and what exactly happens then.