Credit limit of Commsec

[ta2693]

Just open an new account with commonsec. Most feature is same as etrade I am using but commonsec provide credit limit, I am not sure what do that mean. Can anyone here give me some help?

How much is the credit limit?
Does that mean I can trade without putting my money into account at first?


Buy Orders

Buy Orders can be placed for all ASX listed securities. In some circumstances, a deposit may be required before your order is sent to market.

"Unless otherwise advised, we provide each account with a credit limit. Part of this credit limit can be used for non-leading stocks."

If your order exceeds the credit limit, then a deposit may be required. The notional deposit amount is calculated by reference to:

* whether you are buying a leading or non-leading stock;
* the market value of the order; and
* other open or unsettled buy orders.

Where a deposit is required, we will automatically offset the notional deposit amount with the market value of your Participant Sponsored Holdings and any cleared funds held in your Commonwealth Direct Investment Account (CDIA). In many cases, no actual deposit will be needed and your order will be automatically sent to market.

 

[reece55]

TA
without any registered chess stocks under your HIN, Comsec will allow up to 25 K for ASX 300 stocks and then 7.5 K for all other stocks out of this range.

If you have a CDIA, they can check your account balanace and therefore will most likely allow you to have a bigger limit.

This can be a real pain sometime, because if you go back to all cash in a portfolio for a little bit, you will find it will be difficult to pick up a big position in a stock outside of the majors.

Cheers
Reece

 

[ta2693]

TA
without any registered chess stocks under your HIN, Comsec will allow up to 25 K for ASX 300 stocks and then 7.5 K for all other stocks out of this range.

If you have a CDIA, they can check your account balanace and therefore will most likely allow you to have a bigger limit.

This can be a real pain sometime, because if you go back to all cash in a portfolio for a little bit, you will find it will be difficult to pick up a big position in a stock outside of the majors.

Cheers
Reece

Does it like credit card? I can use 25k to buy asx300 stock and pay it back 30 days later without interest?

 

[reece55]

Does it like credit card? I can use 25k to buy asx300 stock and pay it back 30 days later without interest?

HAHAHA.... I wish, this would be like a CFD that is non interest bearing with no margin payment!

It's subject to the T3 settlement system, i.e. you have 3 days to pay for the purchase.

Cheers