Author Topic: SPA3ETF trading gaps  (Read 1888 times)

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Offline Johnathan Habersberger

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SPA3ETF trading gaps
« on: 02/08/2015, 10:26:28 PM »
Hi Gary and team, quick question regarding the SPA3ETF transactions. I am looking at trading part of my super account in the SPA3ETF RS fashion as my account balance suggests this might be best. As leverage is not allowed in this setting, what happens if I follow the rules and exit a trade and then have to wait T+3 to get my cash and re-enter, is this a problem for others or do some brokers enable this trading with settlement incoming? At 8 trades a year this is not a massive issue but clearly confounds things at least to some extent.

Is there a workaround for this problem other than the SPA3ETF EW strategy?

Thanks for your assistance,

Regards,

Jonathon

Offline Gary Stone

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Re: SPA3ETF trading gaps
« Reply #1 on: 02/08/2015, 10:55:50 PM »
Jonathon,

There are two solutions that come to mind immediately and probably more amongst others on the Forum:
1. CFDs can be used on ASX and USA ETFs as a workaround even though leverage is not used, through not having more exposure than your invested capital in the strategy, but leverage can be used too using CFDs  in an SMSF.
2. Using a CHESS sponsored account with an attached trading account will typically allow immediate use of capital from a closed trade into a replacement trade.

Regards
Gary
« Last Edit: 02/08/2015, 11:00:23 PM by Gary Stone »
On the journey

Offline Johnathan Habersberger

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Re: SPA3ETF trading gaps
« Reply #2 on: 03/08/2015, 05:12:42 PM »
Thanks Gary, I have an account with Saxo so will try with CFD's.

Cheers,

Jonathon