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 requirements15% 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)

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 4017.5% Next 60

Placing a CFD (AGL Buy)

Buy 100 Anglo shares @ R339.05

Exposure = R33 905.0015% Margin = R5 085.75

100 Anglo shares = R33 905.00

0.4% Brokerage = R135.6214% VAT = R18.99Total = R154.61 R33 905 x 7.5% =

R2542.88/365 = R6.97

• Low trading costs

• No expiry date

• Short selling

• Hedge your current portfolio

• All the benefits

Advantages CFD Trading

Comparison with traditional shares

CFD Traditional Equity

No physical equity holdingDo not pay STTNo voting rights

Earn synthetic dividends

Physically hold equityPay STT of 0.25%

Voting rightsEarn real dividends

Leveraged tradingSettle only collateral (15% - 17.5%)

Funding; Safex +2% or roughly Prime -2%

Not leveraged Must settle full exposure amount

Expensive to borrow against shares

Settlement PeriodSettled T+1

Settlement Period Settled T+5

TaxationConsidered a Trader

Added to personal income(Trading Instrument)

TaxationCapital 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 EnterContracts

Step 3 Entercents

Step 4Click

Submit Order

Buy 4 contacts of SAB @ 325.00(4 contracts = 400 shares)Exposure = R130 000Margin = R10 500

Step 1Select

Direction

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

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 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

1st Floor | Roland Garros | The Campus | 57 Sloane Street | Byranston | Sandton

PO Box 1899 Witkoppen 2068

Tel +27 (11) 996 5204 | Fax +27 (11) 996 5499Cell +27 (71) 307 5394 | Email travis.robson@psgonline.co.za

www.psgonline.co.za | FSB Licence No. 42996

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