Trademar Margin Requirements List

Contract Code Expiry Date Fixed Margin

ABLQ Sep-12 315

ACLQ Sep-12 700

AFXQ Sep-12 115

AGLQ Sep-12 3 100

AGQQ Sep-12 3 100

AIPQ Sep-12 330

AIQQ Sep-12 1 750

1 2 3

4

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 3rd 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.