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Make clear for me.
Rank: Elder Joined: 3/2/2009 Posts: 26,328 Location: Masada
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I have logged into my CSFS site and viewed my shares. Two things are not clear for me: Market Value portfolio.
Market portfolio value after haircut.Now why is the former of higher value than the latter? For instance, for me, the former is KES.120,361.50 while the later 103,546.53. Please explain.  Portfolio: Sold
You know you've made it when you get a parking space for your yatcht.
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Rank: Chief Joined: 1/3/2007 Posts: 18,121 Location: Nairobi
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Impunity wrote:I have logged into my CSFS site and viewed my shares. Two things are not clear for me: Market Value portfolio.
Market portfolio value after haircut.Now why is the former of higher value than the latter? For instance, for me, the former is KES.120,361.50 while the later 103,546.53. Please explain. Chief... when you get a haircut... you leave with less, sio? What it means is a 'loss' due to commissions [yaani, the haircut]... Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 3/2/2009 Posts: 26,328 Location: Masada
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@VVS, thats alot of money,I thought the commissions charged are normally 2% of the value of sales? If I sell me share currently worth 120K, will I lose a whopping 17K? Portfolio: Sold
You know you've made it when you get a parking space for your yatcht.
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Rank: Chief Joined: 1/3/2007 Posts: 18,121 Location: Nairobi
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Impunity wrote:@VVS, thats alot of money,I thought the commissions charged are normally 2% of the value of sales?
If I sell me share currently worth 120K, will I lose a whopping 17K? Please check the prices they use to 'value' it... The portfolio might be using jana prices while the liquidated value might be current/live prices... Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 9/25/2009 Posts: 4,534 Location: Windhoek/Nairobbery
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VituVingiSana wrote:Impunity wrote:@VVS, thats alot of money,I thought the commissions charged are normally 2% of the value of sales?
If I sell me share currently worth 120K, will I lose a whopping 17K? Please check the prices they use to 'value' it... The portfolio might be using jana prices while the liquidated value might be current/live prices... Yeaah they use jana's prices to calculate the liquidable value...ooops its a Bear..@impunity ur portifolio has just lost 14% or 17K check kesho it will be worse.
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Rank: Elder Joined: 3/2/2009 Posts: 26,328 Location: Masada
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You guys are not getting what I'm asking.anyone with CSFS stanbic broker can check thier accounts and conform what me is saying. Portfolio: Sold
You know you've made it when you get a parking space for your yatcht.
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Rank: Member Joined: 6/21/2010 Posts: 514 Location: Nairobi
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@Impunity, The Market value of your shares is valued at previous closing prices while the valuation after haircut is less by 25%. The valuation after haircut is normally used on instances when one is borrowing funds against the security so as to guard the lender against market fluctuations and is at times based on the spread or in developed markets when dealing in futures this is the amount that is normally locked in though the true amount or value locked is the market value.Most markets use 25%. So don't get worried in any way the true value of your portfolio is 120k and not 103k, its just helping you know how much you can get on your portfolio as a security for any financing or the much you can lose on the basis of the spread. 'They say money cannot buy me happiness but when i compare when i had none and now, i'm happier' Kevin O'leary
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Rank: New-farer Joined: 2/1/2011 Posts: 10
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VituVingiSana wrote:Impunity wrote:I have logged into my CSFS site and viewed my shares. Two things are not clear for me: Market Value portfolio.
Market portfolio value after haircut.Now why is the former of higher value than the latter? For instance, for me, the former is KES.120,361.50 while the later 103,546.53. Please explain. Chief... when you get a haircut... you leave with less, sio? What it means is a 'loss' due to commissions [yaani, the haircut]...  my mrkt value in portfolio is 67,270 @ after haircut is 50,452.50 .  Thanks alot @impunity for raising the query & the grat answers received from vitivingisana, the deal & erifloss as there is a first time for everything.  i had started panicing while reading the responce threads. DON'T SELL YOURSELF SHORT
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Rank: Elder Joined: 3/2/2009 Posts: 26,328 Location: Masada
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erifloss wrote:@Impunity, The Market value of your shares is valued at previous closing prices while the valuation after haircut is less by 25%. The valuation after haircut is normally used on instances when one is borrowing funds against the security so as to guard the lender against market fluctuations and is at times based on the spread or in developed markets when dealing in futures this is the amount that is normally locked in though the true amount or value locked is the market value.Most markets use 25%.
So don't get worried in any way the true value of your portfolio is 120k and not 103k, its just helping you know how much you can get on your portfolio as a security for any financing or the much you can lose on the basis of the spread. @erifloss, thanks alot for the detailed info. I am now up to date. But dont floss. Portfolio: Sold
You know you've made it when you get a parking space for your yatcht.
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Rank: Elder Joined: 9/23/2009 Posts: 8,083 Location: Enk are Nyirobi
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Impunity wrote:erifloss wrote:@Impunity, The Market value of your shares is valued at previous closing prices while the valuation after haircut is less by 25%. The valuation after haircut is normally used on instances when one is borrowing funds against the security so as to guard the lender against market fluctuations and is at times based on the spread or in developed markets when dealing in futures this is the amount that is normally locked in though the true amount or value locked is the market value.Most markets use 25%.
So don't get worried in any way the true value of your portfolio is 120k and not 103k, its just helping you know how much you can get on your portfolio as a security for any financing or the much you can lose on the basis of the spread. @erifloss, thanks alot for the detailed info. I am now up to date. But dont floss. was also piqued on those terms. I searched on google and it brought me straight to Wazua. What does equity stand for just below the market value after haircut. Life is short. Live passionately.
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Rank: Elder Joined: 5/27/2008 Posts: 3,760
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erifloss wrote:@Impunity, The Market value of your shares is valued at previous closing prices while the valuation after haircut is less by 25%. The valuation after haircut is normally used on instances when one is borrowing funds against the security so as to guard the lender against market fluctuations and is at times based on the spread or in developed markets when dealing in futures this is the amount that is normally locked in though the true amount or value locked is the market value.Most markets use 25%.
So don't get worried in any way the true value of your portfolio is 120k and not 103k, its just helping you know how much you can get on your portfolio as a security for any financing or the much you can lose on the basis of the spread. Meaning I can take a loan to the value of my haircut?
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Rank: Member Joined: 8/5/2010 Posts: 335 Location: Nairobi
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Gordon Gekko wrote:erifloss wrote:@Impunity, The Market value of your shares is valued at previous closing prices while the valuation after haircut is less by 25%. The valuation after haircut is normally used on instances when one is borrowing funds against the security so as to guard the lender against market fluctuations and is at times based on the spread or in developed markets when dealing in futures this is the amount that is normally locked in though the true amount or value locked is the market value.Most markets use 25%.
So don't get worried in any way the true value of your portfolio is 120k and not 103k, its just helping you know how much you can get on your portfolio as a security for any financing or the much you can lose on the basis of the spread. Meaning I can take a loan to the value of my haircut? Simply, a hair cut is the difference between market value and dues expected upon a forced-sell.It depends on your assets' liquidity as well as market behaviour (eg. buy and sell volumes, price ranging/trending) The broker gives a 17k haircut, he is informing @Impunity that in terms of immediate liquidity his 120k shares are worth 103k. ie " if you need cash urgently, we think we can get you 103k chap chap."This is just the broker's valid opinion. Also, in my own opinion, if @Impunity went to a bank to borrow against his shares, they may give him a 40% hair cut and lend him 70-75k against the shares. "I'd rather be lucky than clever... every time!" - ME
"The problem is not what we don't know... it's what we know for sure that just ain't!" - MARK TWAIN
"Space we can recover... time never!" - NAPOLEON BONAPARTE
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Rank: Member Joined: 8/16/2012 Posts: 660
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Genghis Khan wrote:Gordon Gekko wrote:erifloss wrote:@Impunity, The Market value of your shares is valued at previous closing prices while the valuation after haircut is less by 25%. The valuation after haircut is normally used on instances when one is borrowing funds against the security so as to guard the lender against market fluctuations and is at times based on the spread or in developed markets when dealing in futures this is the amount that is normally locked in though the true amount or value locked is the market value.Most markets use 25%.
So don't get worried in any way the true value of your portfolio is 120k and not 103k, its just helping you know how much you can get on your portfolio as a security for any financing or the much you can lose on the basis of the spread. Meaning I can take a loan to the value of my haircut? Simply, a hair cut is the difference between market value and dues expected upon a forced-sell.It depends on your assets' liquidity as well as market behaviour (eg. buy and sell volumes, price ranging/trending) The broker gives a 17k haircut, he is informing @Impunity that in terms of immediate liquidity his 120k shares are worth 103k. ie " if you need cash urgently, we think we can get you 103k chap chap."This is just the broker's valid opinion. Also, in my own opinion, if @Impunity went to a bank to borrow against his shares, they may give him a 40% hair cut and lend him 70-75k against the shares. Live and learn; and don’t forget, nothing ventured, nothing gained.
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Rank: Member Joined: 2/7/2014 Posts: 155
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Genghis Khan wrote:Gordon Gekko wrote:erifloss wrote:@Impunity, The Market value of your shares is valued at previous closing prices while the valuation after haircut is less by 25%. The valuation after haircut is normally used on instances when one is borrowing funds against the security so as to guard the lender against market fluctuations and is at times based on the spread or in developed markets when dealing in futures this is the amount that is normally locked in though the true amount or value locked is the market value.Most markets use 25%.
So don't get worried in any way the true value of your portfolio is 120k and not 103k, its just helping you know how much you can get on your portfolio as a security for any financing or the much you can lose on the basis of the spread. Meaning I can take a loan to the value of my haircut? Simply, a hair cut is the difference between market value and dues expected upon a forced-sell.It depends on your assets' liquidity as well as market behaviour (eg. buy and sell volumes, price ranging/trending) The broker gives a 17k haircut, he is informing @Impunity that in terms of immediate liquidity his 120k shares are worth 103k. ie " if you need cash urgently, we think we can get you 103k chap chap."This is just the broker's valid opinion. Also, in my own opinion, if @Impunity went to a bank to borrow against his shares, they may give him a 40% hair cut and lend him 70-75k against the shares. I used to wonder too.Now am more enlightened.Thanks
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Rank: Elder Joined: 2/26/2012 Posts: 15,980
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Was discussed here http://wazua.co.ke/forum.aspx?g=posts&t=26318"There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore
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Rank: Elder Joined: 3/2/2009 Posts: 26,328 Location: Masada
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sparkly wrote:Impunity wrote:erifloss wrote:@Impunity, The Market value of your shares is valued at previous closing prices while the valuation after haircut is less by 25%. The valuation after haircut is normally used on instances when one is borrowing funds against the security so as to guard the lender against market fluctuations and is at times based on the spread or in developed markets when dealing in futures this is the amount that is normally locked in though the true amount or value locked is the market value.Most markets use 25%.
So don't get worried in any way the true value of your portfolio is 120k and not 103k, its just helping you know how much you can get on your portfolio as a security for any financing or the much you can lose on the basis of the spread. @erifloss, thanks alot for the detailed info. I am now up to date. But dont floss. was also piqued on those terms. I searched on google and it brought me straight to Wazua. What does equity stand for just below the market value after haircut. After hair shave + Available funds Portfolio: Sold
You know you've made it when you get a parking space for your yatcht.
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