Presentation on theme: "Travis Robson * As voted by Business Day Investors Monthly Trading with PSG Online."— Presentation transcript:
Travis Robson * As voted by Business Day Investors Monthly Trading with PSG Online
PSG Online Securities Ltd Online Securities Limited trading as PSG Online is a fully fledged stockbroking company and a member of the JSE Securities Exchange of South Africa. PSG Online was founded in 1996 and is 100% owned by PSG Konsult which in turn is a subsidiary of PSG Group, a top 100 company listed on the JSE. PSG Online has established itself as a leading online trading specialist. Our entrepreneurial culture is balanced by a strong risk management discipline coupled with the ability to be flexible and innovative. We have developed a well defined value added business that can serve all the needs of our clients. We provide a wide range of products and services to a diverse client base which includes Stockbrokers, Asset managers and corporate and retail clients.
PSG Online Securities Ltd JSE listed equities, warrants and exchange traded funds (ETF’s) Contracts for differences (CFD's) Single stock futures (SSF's) Currency futures Access to new listing private placement opportunities Trading in offshore equities on any of the major international stock exchanges through PSG Konsult Brokers (UK) Ltd who have formed a partnership with ADM Investor Services Ltd. Qualify for Adato Scripfin which allows you to raise money against your current share portfolio as security helping you retain your assets
PSG Online Securities Ltd Skilled support operators and brokers are available to help you trade online anytime during trading hours Live prices and trading facilities Low fees Online portfolio valuations Watch list and alert notifications Comprehensive stock information and corporate action database Charting - WEN Technical Analysis Software Research available on the top 100 listed shares on the JSE (excluding resources and property shares) Daily market reports updated 3 times per day and technical analysis reports Weekly newsletters Read independent fundamental research on shares listed on the JSE with use of filters to search for undervalued, high quality shares
Equity (Share) trading Build own portfolio of shares in companies listed on Johannesburg stock Exchange (JSE) Online share trading system with direct market access Access to new listing private placement opportunities Consolidated platform gives you access to PSG Online investment account thought one login - including your investment account, trading positions, derivative holdings, offshore portfolio and your unit trust portfolio Fees Brokerage charged on a sliding scale – maximum of R98 or 0.9% (excl VAT) A monthly admin charge of R40 per month is charged per active account R99 per month for private users and R299 per month for professional users you can have access to live prices
CFD Product Description Go ‘Long’ & ‘Short’ with CFD’s on Top 100 JSE listed shares Margin deposit requirements 15% Top 40 shares / 17.5% on next 60 shares Variation margin required for adverse share price movement. Brokerage = 0.4% per transaction Breakeven = 0.92% (VAT included) Zero STT Financing at competitive rates: Current borrowing rate 7.50% (± Prime – 2%) Minimum Exposure per trade of R (R3750 margin) Derivative - A contract whose value depends on (or derives from) the value of an underlying share e.g. share – ANG, BIL, SOL
Top 100 Shares: CFD Margin 15% Top % Next 60
Placing a CFD (AGL Buy) Buy 100 Anglo R Exposure = R % Margin = R Anglo shares = R % Brokerage = R % VAT = R18.99 Total = R R x 7.5% = R /365 = R6.97
Low trading costs No expiry date Short selling Hedge your current portfolio All the benefits Advantages CFD Trading
Comparison with traditional shares CFDTraditional Equity No physical equity holding Do not pay STT No voting rights Earn synthetic dividends Physically hold equity Pay STT of 0.25% Voting rights Earn real dividends Leveraged trading Settle only collateral (15% %) Funding; Safex +2% or roughly Prime -2% Not leveraged Must settle full exposure amount Expensive to borrow against shares Settlement Period Settled T+1 Settlement Period Settled T+5 Taxation Considered a Trader Added to personal income (Trading Instrument) Taxation Capital Gains Tax (CGT) (Investment Instrument) “Naked short selling” Suitable for both hedging & trading opportunities Long only
SSF Product Description A standardised contract. Of a standard quantity (100) of a specific underlying listed share Requires a fixed margin deposit to open a position (around 15% of the total value). Expires on a predetermined future date: Third Thursday of every March, June, September & December. Gives the owner the right to close the contract at a price agreed when entering the contract, including all relevant dividends & interest. SSFs are listed on the South African Futures Exchange (SAFEX), a subsidiary of the JSE. SSF contracts equate to100 shares of the underlying instrument. SSFs are created at the close of trading. All unmatched SSF orders expire at the end of the trading day. All partially matched orders will be cancelled at the end of the day.
Placing a SSF Order (SAB Buy) Step 2 Enter Contracts Step 3 Enter cents Step 4 Click Submit Order Buy 4 contacts of (4 contracts = 400 shares) Exposure = R Margin = R Step 1 SelectDirection
Position Size & Margin (SSF) You have R in your SSF account You are willing to risk 2% of your capital = R2 000 You decide to buy SAB Miller (SAB) at R You set a stop R R – R = R5.00 Take R2 000 & divide it by the R5.00 per share that you are risking (R2000 / R5.00) Your position size = you can buy 400 shares (400 shares = 4 contracts) The SSF initial margin required per contract is R2 625 R2 625 x 4 contracts = R initial margin 4 x 100 x R = R exposure
Comparison with traditional shares INVESTOR A (Share Trader) INVESTOR B (SSFs Trader) Confident that Sasol shares will increase. She has R which she can invest. Sasol’s share price is R350, therefore she buys 100 shares. 3 months later the price has increased by 10% so she sells her shares to make a R3 500 profit. Her return on her investment is 10%. The initial margin set by the broker is R6 000 which is paid by the buyer. Sasol’s share price is R350, therefore she buys 1 contract. After 3 months the price has increased by 10% & the investor closes out his position & sells out of the Sasol SSF contract. His profit is R3 500 but his return on his investment is 58%.
Contact Travis Robson Trading and Relationship Manager 1 st Floor | Roland Garros | The Campus | 57 Sloane Street | Byranston | Sandton PO Box 1899 Witkoppen 2068 Tel +27 (11) | Fax +27 (11) Cell +27 (71) | | FSB Licence No Visit our share trading page by clicking hereclicking here