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Trading with PSG Online

Trading with PSG Online. Travis Robson * As voted by Business Day Investors Monthly. 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.

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Trading with PSG Online

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  1. Trading with PSG Online Travis Robson * As voted by Business Day Investors Monthly

  2. 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.

  3. 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 AdatoScripfin which allows you to raise money against your current share portfolio as security helping you retain your assets

  4. 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

  5. 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

  6. CFD Product Description Derivative - A contract whose value depends on (or derives from) the value of an underlying share e.g. share – ANG, BIL, SOL 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 R25 000 (R3750 margin)

  7. Top 100 Shares: CFD Margin 15% Top 40 17.5% Next 60

  8. Placing a CFD (AGL Buy) Buy 100 Anglo shares @ R339.05 Exposure = R33 905.00 15% Margin = R5 085.75 100 Anglo shares = R33 905.00 0.4% Brokerage = R135.62 14% VAT = R18.99 Total = R154.61 R33 905 x 7.5% = R2542.88/365 = R6.97

  9. Advantages CFD Trading • Low trading costs • No expiry date • Short selling • Hedge your current portfolio • All the benefits

  10. Comparison with traditional shares

  11. 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.

  12. Placing a SSF Order (SAB Buy) Buy 4 contacts of SAB @ 325.00 (4 contracts = 400 shares) Exposure = R130 000 Margin = R10 500 Step 1 Select Direction Step 3 Enter cents Step 4 Click Submit Order Step 2 Enter Contracts

  13. Position Size & Margin (SSF) • You have R100 000 in your SSF account • You are willing to risk 2% of your capital = R2 000 • You decide to buy SAB Miller (SAB) at R325.00 • You set a stop loss @ R320.00 • R325.00 – R320.00 = 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 = R10 500 initial margin • 4 x 100 x R325.00 = R130 000 exposure

  14. Comparison with traditional shares INVESTOR A (Share Trader) INVESTOR B (SSFs Trader) Confident that Sasol shares will increase. Confident that Sasol shares will increase. She has R35 000 which she can invest. Sasol’s share price is R350,therefore she buys 1 contract. Sasol’s share price is R350,therefore she buys 100 shares. The initial margin set by the broker is R6 000 which is paid by the buyer. 3 months later the price has increased by 10% so she sells her shares to make a R3 500 profit. After 3 months the price has increased by 10% & the investor closes out his position & sells out of theSasol SSF contract. Her return on her investment is 10%. His profit is R3 500but his return on his investment is 58%.

  15. Contact Travis Robson Trading and Relationship Manager 1st Floor | Roland Garros | The Campus | 57 Sloane Street | Byranston | Sandton PO Box 1899Witkoppen 2068 Tel +27 (11) 996 5204 | Fax +27 (11) 996 5499 Cell +27 (71) 307 5394 | Email travis.robson@psgonline.co.za www.psgonline.co.za | FSB Licence No. 42996 Visit our share trading page by clicking here

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