FAQ
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The inflation rate for the Income game is based on 6% per annum or 0.5% per month.
Trades placed before market close (17:00) will be completed at the closing price on the day that they are placed. Trades placed after market close will be completed at the closing price on the following trading day.
Teams must protect their capital against inflation (3% for the duration of the competition). In other words, you need to achieve actual growth from buying and selling shares above R30 000. (R1 000 000 x 3%) and then maximise your income by earning interest on your cash balance and receiving dividends from companies paying out dividends.
The highest growth percentage wins the competition.
Teams must protect their capital against inflation (3% for the duration of the competition). In other words, you need to achieve actual growth from buying and selling shares above R5 000. (R1 000 000 x 3%)/6) and then maximise your income by earning interest on your cash balance and receiving dividends from companies paying out dividends.
The highest growth percentage that month wins the competition.
If a distribution of dividends takes place after the closing date, that distribution will not be credited to the portfolio. In addition, if the declaration of the dividend falls outside the Challenge start date, that dividend will not be paid. If teams buy or sell shares the LDT, dividends will not be credited to the account. To receive dividends, your purchase must take place the day before the LDT.

Wave and knockout warrants follow an index and work differently than normal vanilla warrants i.e. equity warrants. Two issuers in the market provide these products: Standard Bank and Deutsche Bank.

You can identify a Standard Bank Knockout! Warrant thus: TOPSK (Then a letter of the alphabet from A to O for call and from P to Z for put) e.g. TOPSKA.

You can identify a Deutsche Bank warrant thus: TOPDW (Then a letter of the alphabet from A to O for call and from P to Z for put) eg TOPDWA.

These warrants have a knockout level. Should the indices reach that level, you are “knocked out” of your position and you lose everything you put into the trade.

The closer these warrants get to the knock-out level, the higher geared they become and the bigger the risk in trading them.

You can go long or short with them. If you buy a long contract, you are not expecting the contract to go below the strike level. If it does, you lose everything. If it goes up, you should be making money.

If you buy a short contract, it implies that you do not expect the contract to go above the strike level. If it does, you lose everything. If it goes down, you should be making money.

You can buy any of the following to gain exposure to indices:
  • Exchange-traded funds (ETFs)
  • Barrier warrants
  • Wave warrants and knockout warrants.
All warrants should have the letters TOP in the code name.
Knockout or wave warrants. (See “What are wave or knockout warrants?” above.)
  • Click on “Trade” at the top of the page bar
  • Click on “Trade or Quote“
  • Click on “Show All” for shares/warrants
No more than 10% of the portfolio value may be held in any one share or warrant.
  • If you would like to buy shares/warrants in companies, click “Trade”, then “Trade or Quote” at the top.
  • You can then type the name of the company you want to buy in the box (under “Search”) and select shares or warrants.
  • Then click “Quote” to get the current price which is in cents.
  • Please note, you will get the closing price on the day you placed the order and not the current price you are being quoted.
  • To trade, click the “Trade” button to place your order and then type in the number of shares/warrants you would like to buy.
  • Tip: Don’t just guess; work it out. How much money do you want to spend? Take the amount and divide it by the share price in Rands to get the number of shares to buy.
  • You will then see a screen with all the costs displayed and you can click “Confirm this order”. Please note the costs are based on the previous day’s closing price, but you will get the current day’s closing price and the value will be debited accordingly.
  • You screen will then display “Order Placed”, which is confirmation your order has gone through.
  • Click “Trade” at the top of the page bar.
  • Click “Trade or Quote”.
  • Type in the share code or name of the company you own.
  • Click “Trade”.
  • The screen will display the “Max you own to sell”.
  • Enter the number of shares you want to sell.
  • Click “Place Sell Order”.
  • Check your available balance in the top right hand corner.
  • Depending on which game you playing, you will subtract
  • R400 000 from the available balance if you are playing the Income Game
  • R250 000 from the available balance if you are playing the Equity Game
  • R0 from the available balance if you are playing the Speculator Game
  • The result will be the amount you can spend. However, you can’t spend more than 10% of your portfolio value on any one company if you are playing the Equity or the Speculator Game. For the Income Game, you don’t have a restriction as to how much you can spend on one company.
  • Take the amount you want to spend on a company and divide by the share price in rands. (Always remember to convert the share price in cents to rands for instance 35940c = R359.40).
You can buy put warrants. To identify put warrants, look for a letter from P to Z at the end of the name of the warrant select the instrument and then click “Place sell order”.
Warrants:
AGLSBA (last letter A-O = calls)
AGLSBP (last letter P-Z = puts)
You will receive no dividends paid on the underlying shares. However, the dividend stream is priced into the warrants, so that warrant holders aren’t prejudiced in holding warrants over ex-dividend dates.
Teams will only be permitted to purchase or sell securities equivalent to 50% (fifty per cent) of the actual number of securities traded on the JSE during any Trading Day. Any orders that exceed this limitation will be only partially filled. If no securities are traded on that trading day, the order will be automatically rejected. Trades not executed for any reason at the end of the day for which the trade was requested, will be cancelled.
Here is a tip by Simon Brown from www.JustOneLap.com on his selection criteria:
  • More than 90 days till expiry
  • Strike price within 15% of current underlying share price
  • Warrant price greater than 20c.
An account may be suspended if the JSE has not received the proof of payment by email or the team has not paid the entry fee of R120.00 within 30 (thirty) days of registering. To be reinstated, your team should send proof of payment to schoolsc@jse.co.za.
Unfortunately, the JSE does not currently offer charts, but one of these websites may have the charts you are looking for:
www.sharenet.co.za
www.moneyweb.co.za
www.finweek.co.za

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