Buying/selling same day with Commsec

[rez_erection]

Hey,

Just a quick question with commsec, if I buy a stock and sell on the same day for a higer price, with commsec to I need to money to cover the initial stock purchase? When buying selling different stocks on the same day my account settles the difference on T+3.

ie buy stock abc for 1.20
sell stock abc for 1.30 same day

Do I just get the proceeds of the sale? not 100% sure with commsec, I now this is riskier etc if the stock dives

Cheers

 

[SilverRanger]

Re: Buying/selling same day - Commsec

Hey,

Just a quick question with commsec, if I buy a stock and sell on the same day for a higer price, with commsec to I need to money to cover the initial stock purchase? When buying selling different stocks on the same day my account settles the difference on T+3.

ie buy stock abc for 1.20
sell stock abc for 1.30 same day

Do I just get the proceeds of the sale? not 100% sure with commsec, I now this is riskier etc if the stock dives

Cheers

From memory if you close your position with Commsec before T+3, it will calculate the net profit/loss and credit/debit that amount from your account, kind of like CFD, but with higher brokerage (but no margin!! lol)
But with that said, always make sure you have the money to cover the purchase, as otherwise you will be screwed if the stock goes into trading halt or something

 

[TabJockey]

Re: Buying/selling same day - Commsec

Yeah lots of people trade with Commsec's money, after you make a bundle the first few times its awesome and then something goes wrong and you need to scramble to get some cash together. Definately have the money to pay for the shares always ready to go.

 

[rez_erection]

Re: Buying/selling same day - Commsec

Thanks for the clarification, I understand if you don't close you are on the hook for the amount, just wasn't 100% as I have bought sold different companys and it settled the difference - don't know why it would've been different, I guess being new and making money without spare capital (without having to sell others), thought I would ask a dumb question :S Saw a good oppertunity to make some money (AVB) without much risk of it heading downwards.

 

[nunthewiser]

Re: Buying/selling same day - Commsec

Oh you guys....

anyone for a trading halt?

 

[rez_erection]

Re: Buying/selling same day - Commsec

The hard lesson was there, I saw it, pre-opened early avo for an announcement but it was only the query. If it had've gone TH I would've sold other stock which I was prepared to sell if needed but ended up not needing to.

Always learning, I have already made some mistakes that cost me money, although it sucks, im only youngish so I have time to learn the lessons.

 

[outback]

Re: Buying/selling same day - Commsec

We're all youngish, just some are youngisher than others.

 

[rez_erection]

Re: Buying/selling same day - Commsec

Haha, sorry no offense.

Clarification needed, I open a position today I can't cover, do I need to close the same day? Or Is it not needed to close until before t+3?

Trying to get my head around trading with no money

 

[TabJockey]

Re: Buying/selling same day - Commsec

We all just told you not to do that. You have 3 days to get the cash or sell the shares.

 

[rez_erection]

Re: Buying/selling same day - Commsec

I haven't actually done this, I am trying to understand how it works, I'm only game enough to invest the money I actually have

 

[malachii]

Re: Buying/selling same day - Commsec

You'll actually find with Commsec that you need to have sold before close of business on the day following the one you purchased on (eg if you buy monday you would need to have sold by close of market tuesday). If you leave it any longer than that the trasaction will stretch over the T+3 and you'll cop a fine.

If you are taking delivery of the shares though, you only need to have the cash in the account by the end of the T+3 (eg if you buy monday the cash needs to be in your account by Thursday).

malachii

 

[doogie_goes_off]

Re: Buying/selling same day - Commsec

Good, otherwise it's the first step to being a young bankrupt. Always CYA (Cover your rear end). Have the cash? then play and learn from the losses and wins. Don't ever think you can win from doing no research at all and like Nunthewiser says, be prepared for unexpected events, eg: trading halts.

 

[doogie_goes_off]

Re: Buying/selling same day - Commsec

Also the use of the word 'invest' in the context you mention (ie: sell within 3 days) is debatable. IMO you are not really investing if you hold for 3 days, you are trading, there is a difference IMHO.

 

[rez_erection]

Re: Buying/selling same day - Commsec

Thanks for the help. Signed up to here to learn from other people, I'm only 23 and none of my mates/ parents friends invest or trade so it's hard learning without asking stupid questions. I am steering clear of debt and making sure I am using my own money.