Margin List (1) Contract Code: Listed share to trade on SSF’s (also known as Share Code) (2 ) Expiry date: The month the contract will expire (March, June, September and December) Have a set expiry date: Upon expiry of the contract the investor can physically buy or sell. The shares from the other side of the contract. Exchange standardised futures contracts expire every 3 rd Thursday of March, June, September and December. Rollover Fees: As expiry approaches you may want to extend the life of your Futures position. This will require you to close your current position and open a new position in the next expiry: this is a rollover. For rollover trades a trading fee is payable.
(3) Fixed Margin Volumes on SSF’s will always be in 100 when trading the different shares that’s available Mr Price will be MPCQ Sept 12 R630 per 100 shares Standard bank will be SBKQ Sept 12 R850 per 100 shares Should you trade 200 shares on Mr Price the margin will be 2 x R630 = R1260 (Margin that will be taken out of your traders account to trade Mr Price)
Marked-to-Market Marked-to-Market calculations are done daily at the close of trading. Depending on which way the market moved, an investor will be required to insert money into his call account or receive the variation margin. Example: Suppose one Telkom contract was bought at R65.00 and the closing price is R67.50. The variation margin paid to the client is: Margin = 100 shares x (67.50 – 65.00) = R250.00 profit made on the trade.
Margin Calls If the market moves against you, you may be forced to top up your margin or traders account. This will result in a margin call from your broker. Margin calls force you to realise your losses on a daily basis, helping the reluctant loser leave the market before his losses become too much.