# Options and brokerage



## zengin (26 July 2007)

Hi guys
I am new to share trading but I have been trading options with a full service broker for the last 6 months.My next plan of trading is as follows ( I am also learning to trade cfds and indicies)

If I buy say 3000 zinifex at 20.00 per share for total cost of $ 60.000 + brokege
share goes up by 40 cents = profit of $ 1200 + brokege

IS THIS RIGHT IN A PERFECT WORLD OR IS THERE SOMETHING I AM MISSING.
Also my broker will charge me 1% is this on my profit or on my initial investment. I am trying to see if this will be a profitable practice

I appreaciate for the help


----------



## Prem (30 July 2007)

Hello Zengin

About your brokerage question, your broker should be charging you 1% on your (initial) investment capital for that share( not profit). 

Hope this helps


----------



## Mofra (31 July 2007)

zengin said:


> If I buy say 3000 zinifex at 20.00 per share for total cost of $ 60.000 + brokege
> share goes up by 40 cents = profit of $ 1200 + brokege



Might want to make that profit _minus_
brokerage.

With all due respect, derivatives can involve some fairly complex math & planning, how have you been fairing over the last 6 mths?


----------



## zengin (1 August 2007)

Thanks Prem and Mofra

I done okey trading options but I feel that there must me some other way of making more money maybe or having more control over your trading/investing.
I only got into options because a certain seminar I have attended about a year ago.
If I use non service broker charges will lot less I believe for buy and sell so I might give comsec a call today to see how much they charge.
Looking at US markets now SP 500 and all the rest seems to be heading the right direction , this week might be a good week after all.

Zengin


----------



## sails (3 August 2007)

zengin said:


> Thanks Prem and Mofra
> 
> I done okey trading options but I feel that there must me some other way of making more money maybe or having more control over your trading/investing.
> I only got into options because a certain seminar I have attended about a year ago.
> ...




www.optionsexpress.com.au is another one to look at for Oz options.  I think they require a US account to be opened before you can open an Oz account - so a bit of extra paper work.  Otherwise they are competitive on their pricing for 10 lots or less.  If trading larger lot size than that, might be worth looking at http://www.traderdealer.com.au/

Also, I believe Interactive Brokers are also going to become available for Oz options sometime in the near future.


----------



## drasicjazz (3 August 2007)

could one of you guys help me out
i m so unaware of this option story...
like today IMI made the ann
Appendix 3B - Exercise of Options

how do i have to feel about this? is it good-bad
and does it have any value for me

thanks 
drasic


----------

