Wednesday, November 12, 2008

ES Contracts vs Warrants/CFD ?

Still remember the new SGX product I mentioned in August 2008 Article “ETF, Alternative to Stock Picks” ?

Yes, finally, Singapore Exchange Limited (SGX) announced on November 5, 2008 that it will launch Extended Settlement (ES) Contracts on 23 January 2009, previously referred to as Single Stock Derivatives (SSDs).

ES Contract is a forward contract traded on the SGX Securities Market:
  1. Can Buy or Short Sell the underlying stock listed on SGX
  2. Can settle up to 35 days later
  3. No finance charge.

Looks like better than trading warrants or CFD – no time decay, no finance charge, more price transparency (not controlled by market maker). Best of all, can short sell, can profit from Bear Markets. Hope it includes STI ETF, then I can short sell lor!

I'm going to attend the free seminar to find out more.

Interested? Register online at SGX (seems there is some problem with the system, so I register via email)

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