The inflation rate for the Income game is based on 6% per annum or 0.5% per month.

Cash + holdings - income = actual growth

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. Trades will reflect the following business day provided it was placed before (17:00).

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.

Knockout or wave warrants. (See “What are wave or knockout warrants?” above.)

Click on “Trade” at the top of the page bar

No more than 10% of the portfolio value may be held in any one company in the FTSE/JSE Top40 or ETF/ETN and no more than 5% of the portfolio value may be held any warrants or other companies outside the FTSE/ JSE Top40.

• If you would like to buy Shares/ETFs/ETNs/Warrants, click “Trade”, then “Trade Now” at the top.
• You then have an option to filter by instrument type by clicking on either Shares/ETFs/ETNs/Warrants depending on which game you playing.
• You then have an option to filter it further by Industry/Subsector if it’s Equities
• Once you found the company you want to buy, select it and it takes you to the order page.
• All you then need to do is enter the number of shares you want to purchase and click “Place Buy Order”.
• You screen will then display “Order Placed”, which is confirmation your order has gone through.

• Click “Portfolio” at the top of the page bar.
• Click “Trade”.
• Click “Sell”.
• Enter the number of shares you want to sell.
• Click “Place Sell Order”.
• You screen will then display “Order Placed”, which is confirmation your order has gone through.

• 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
• R0 from the available balance if you are playing the ETF/ETN Game
• The result will be the amount you can spend. However, you can’t spend more than 10% of the portfolio value may be held in any one company in the FTSE/JSE Top40 or ETF/ETN and no more than 5% of the portfolio value may be held any warrants or other companies outside the FTSE/ JSE Top40 in Equity or the Speculator Game and ETF/ETN 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 5% (five 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:

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 R100.00 within 30 (thirty) days of registering. To be reinstated, your team should send proof of payment to schools@jse.co.za.