Buying shares through CHESS

[ultimacuraga]

Hello to ALL. I'm Aidan and new to the real shares trading world. [Except for the ASX High School Games...]

When I did those games, I didn't recall having CHESS.

I'm under CommSec and recently ordered shares to be bought at a certain price... E.g. AMC 1000 Shares @ $4.90.

10 minutes later the order was excecuted... And realised it was being held by CHESS...

I only just found out that it takes about 3 days for it to be fully "yours". Is that right? So, regardless of the market price, will I still definitely be settling for 1000 shares @$4.90?

Anyone here with CommSec and can help?

Cheers~!

 

[investorpaul]

Hi,

CHESS is a "clearing house" for share transactions, it is just part of the process.

Althugh it takes 3 days to clear you can still sell the shares inbetween that period if you wanted to and you have purchased them at $4.90

 

[Agentm]

well done aidan. hope it goes well..

 

[ultimacuraga]

Thank you thank you thank you! =]

 

[Sir Osisofliver]

Hello to ALL. I'm Aidan and new to the real shares trading world. [Except for the ASX High School Games...]

When I did those games, I didn't recall having CHESS.

I'm under CommSec and recently ordered shares to be bought at a certain price... E.g. AMC 1000 Shares @ $4.90.

10 minutes later the order was excecuted... And realised it was being held by CHESS...

I only just found out that it takes about 3 days for it to be fully "yours". Is that right? So, regardless of the market price, will I still definitely be settling for 1000 shares @$4.90?

Anyone here with CommSec and can help?

Cheers~!

1) Go read my thread

2) CHESS stands for Clearing House Electronic Subregister System - Your shares will be held on your HIN (Holder Identification Number unique to you) at COMMSEC (your sponsoring broker) designated by their PID (Participant Identification Number). CHESS does not hold your shares, they merely clear the shares (IE arrange transfer of shares from seller to purchaser (thats you)).

3) The execution price is the price at which that parcel of shares you purchased has transacted. Regardless of the price movements since that instant - you must pay that price upon settlement of your purchase. (If you do not you will be charged fail fees, placed in the Stockbrokers little black book - called the SMRS ( Stockbrokers Mutual Reference Society) and you are effectively banned from future transactions.

Good Luck

Cheers

Sir O

 

[beamstas]

You can just ignore chess

 

[ultimacuraga]

Hmmmm, another quick question...

Is SHORT-SELLING like when you buy shares and not yet have it "REGISTERD" and then you sell it?

I know one of you mentioned above that it does take about 3 days to clear, but also said I can still sell in between...

Is that what it is?

For example... yesterday I bought AMC 1000 @ $4.87 and today I want to sell AMC 1000 @ $5.10... Meanwhile I haven't been direct debited yet for the initial amount I purchased... Is that not acceptable? Does it mean I have to wait 2 days before I get charged on my Transaction account?

Say if it's ok to do so, how soon and in fact how will my "profits" be paid?

Sorry guys, I'm a newbie [obviously]...

=] Thanks in advanced!

Aidan.

 

[ultimacuraga]

I found out that YES I can buy and sell the same day [at CommSec] and that the difference is paid in between. But I would like to know will there be fees associated with this activity?

I just would like to confirm. I wasn't able to get the info I needed n the website or at a least a straightforward answer...

Cheers,


Aidan.

 

[beamstas]

Hmmmm, another quick question...

Is SHORT-SELLING like when you buy shares and not yet have it "REGISTERD" and then you sell it?

I know one of you mentioned above that it does take about 3 days to clear, but also said I can still sell in between...

Is that what it is?

For example... yesterday I bought AMC 1000 @ $4.87 and today I want to sell AMC 1000 @ $5.10... Meanwhile I haven't been direct debited yet for the initial amount I purchased... Is that not acceptable? Does it mean I have to wait 2 days before I get charged on my Transaction account?

Say if it's ok to do so, how soon and in fact how will my "profits" be paid?

Sorry guys, I'm a newbie [obviously]...

=] Thanks in advanced!

Aidan.

Hi Aidan

Short selling is selling a stock you don't own - and then you buy it back at a later date

What you want to do is simply sell a LONG Position. You can do this at any time - for example you can Buy at 12:30pm and sell at 12:31pm and that is compeltely fine.

Don't even worry about settlement, it won't matter. It's just when CHESS Updates the system - you bought the shares when you were filled in the market, and you can sell them any time you want after that

Brad

 

[cutz]

Is SHORT-SELLING like when you buy shares and not yet have it "REGISTERD" and then you sell it?

I know one of you mentioned above that it does take about 3 days to clear, but also said I can still sell in between...

No,

As soon as your buy order has been filled you are effectively the proud owner of those stocks, so selling on the same day is not short selling.


Short selling stocks is when you borrow those stocks then sell them, pocket the cash, then buy them back at a later date, ( presumably for a cheaper price) then those shares you have bought back are returned to the original owner.

There are obviously much more efficient ways to go short but the example above refers to common shares.

EDIT>> LOL, beat me to it Brad.

 

[So_Cynical]

I know one of you mentioned above that it does take about 3 days to clear, but also said I can still sell in between...

If u login to Comsec, and the shares show up in your portfolio...u can sell em.

Welcome to the wonderful world of share ownership