How do you short the ASX 200 or the All Ords?

[NFuse]

If I believe that the ASX200/All Ords are going to drop over the next few months, what would be the best way to profit from this if I'm correct?

 

[kerosam]

For me, I'll look at STW (asx code) since I don't have a futures account with Mac Prime.

 

[So_Cynical]

If I believe that the ASX200/All Ords are going to drop over the next few months, what would be the best way to profit from this if I'm correct?

U could use CFD's but there prob best used for short term trading...don't know about a few months.

 

[Nyden]

U could use CFD's but there prob best used for short term trading...don't know about a few months.

Cynical, he wasn't asking for an opinion on the state of the markets :

As mentioned; one way would be to short index funds. Less risky than shorting individual stocks (which can buck the trend); SWT is a good example.

But, you won't get the same drastic results as some individual stocks.

 

[Kimosabi]

In the states they have Inverse ETF's, but I haven't found any Inverse ETF's in Australia yet...

 

[>Apocalypto<]

If I believe that the ASX200/All Ords are going to drop over the next few months, what would be the best way to profit from this if I'm correct?

Hi NFuse.

you have a couple ways.

1. Options, you can trade call and put options over the s&pasx200 XJO

2. Warrents I think you can trade warrents over the xjo. but don't quote me as I am really not sure.

2. CFD's you have 3 main options with cfd's

IG follows the spi at night xjo during the day. ( just like the spi does) but the index price is closer to the xjo. 5 (mini) or 25$ (full) a point. can go long or short.

CMC 1$ a point can go short long follows the same market hours as IG

GFT tiny margins. same times as IG CMC 1$ a point. long and short.

Pacific Continental.
follows the actual xjo 1$ per point 10am open to 4pm close. you can go long and short but check with them as last time I spoke to them a year ago at that moment you could not go short.

for the real thing then Pacific is the way to go. but u pay brokerage and a 2 point spread. IG and CMC only charge 2 point spread.

Last but not least, THE SPI,

you can go long and short on the future determined value of our top 200 shares. you pay a much higher margins, pay brokerage on each side. mini 5$ and full 25$ available. But study and much research required before thinking about trading futures.

The best one we be what suites your trading plan and level of experience.

Hope that helps

 

[GreatPig]

Warrents I think you can trade warrents over the xjo

You can, but you're pretty much always dealing with the MMs and they have a tendency to play games at critical times - ridiculous spreads and removing bids and offers for sometimes extended periods of time.

GP

 

[NFuse]

Thank you everyone. Great replies.

I'm leaning towards STW because of my inexperience. It seems the easiest. Am I correct in saying that I won’t be able to do it with my Commsec account? I need a full service broker? Also, does anyone know how much security they would want?

Thanks for your help guys.

 

[Aviator33]

You can day short sell with Commsec for a minimum $500 order but a heap of other conditions apply such as the price you can short at, can't short at the open etc etc. The list of stocks is also pretty restricted (STW is not on the list). You can also term short sell with Commsec but min order is $20K.

Personally, I'd suggest setting up a CFD account with a DMA such as Marketech would be your best option.

Cheers

 

[Simon_Purser]

Hi, I'm new to this site, and read with interest about inverse ETFs. I get Martin Weiss' Money and Markets newsletter which has for over 12 months recommended inverse ETFs. I've read about STW but when I put it in as a stock code with my online broker, it comes up as "not an ASX stock code"
What am I doing wrong here?
How do I invest in it?
Is STW affect by Governemtn anti-shorting regulations?

Advice appreciated! Simon

 

[Boggo]

Personally, I'd suggest setting up a CFD account with a DMA such as Marketech would be your best option.

Cheers

If you just want the ASX Indices (ie the S&P Indices) then Marketech are good, their spreads are a bit wider than normal at the moment but the service and software are excellent.

Not much use at the moment though with no shorting

 

[Sir Burr]

Hi,

With STW I thought you receive dividends but wondering about trading an Index such as XJO with CFD's.

Do you still receive dividends?

Thanks.

 

[skc]

Pacific Continental.
follows the actual xjo 1$ per point 10am open to 4pm close. you can go long and short but check with them as last time I spoke to them a year ago at that moment you could not go short.

for the real thing then Pacific is the way to go. but u pay brokerage and a 2 point spread. IG and CMC only charge 2 point spread.

Do these guys still exist? Are they affiliated with the UK company baring the same name? According to this link they are in liquidation?

http://www.pacconsec.com/