How to short sell stocks in Australia?

[jempol]

Which broker allow?
Any broker allow day trade in Australia but open position with short first and close before the market close?
If so is it using like US rule the short can't lower than previous tick?
Forgive my ignorance and thanks in advance for any views.

 

[sails]

I don't know of any other brokers allowing short selling except this one which provides an alternative:
http://www.traderdealer.com.au/shorting/short_selling.php

I have never used their short selling facility, so don't know how well it works. BTW, they do explain the uptick rule on their site.

Cheers

 

[Adventure Always]

Have alook at Macquarie Prime, they have redefined margin lending to CFD rates, and also do short stocks.

Pete

 

[Damuzzdu]

Which broker allow?
Any broker allow day trade in Australia but open position with short first and close before the market close?
If so is it using like US rule the short can't lower than previous tick?
Forgive my ignorance and thanks in advance for any views.

jempol,

My broker (full service - Macquarie Private Wealth allows shorting. They book the stock and then put the sell order on market, and yes I've close out on the same day, by just buying at market)

ASX rules does not allow shorting on a down tick similiar to when US markets have "trading curbs" in place. Thus with us you can go short by standing in line on the sell side, but if the sale is a sell order at market, you have to wait until buy at market occurs before you short/sell at market (ie hit the buy side with yr sell order), thus you could be forced to wait for a number minutes waiting for the opportunity.

Trust this helps.
Cheers
Muzz

 

[Steve-IB]

Which broker allow?
Any broker allow day trade in Australia but open position with short first and close before the market close?
If so is it using like US rule the short can't lower than previous tick?
Forgive my ignorance and thanks in advance for any views.

We have just added the availability to short. Commissions are the same as going long (0.08%, $6 minimum).

You can view an availability list here:
http://individuals.interactivebrokers.com/en/trading/shortableStocks.php?ib_entity=llc

 

[juw177]

We have just added the availability to short. Commissions are the same as going long (0.08%, $6 minimum).

You can view an availability list here:
http://individuals.interactivebrokers.com/en/trading/shortableStocks.php?ib_entity=llc

Can you please explain specifically how do you short on IB?

 

[Steve-IB]

Can you please explain specifically how do you short on IB?

Just the same as placing any other order. In this case, just place an order to sell a stock that you do not own.

 

[juw177]

Just the same as placing any other order. In this case, just place an order to sell a stock that you do not own.

Oh. Thanks Steve, didn't know it was that easy.

 

[cutz]

Hi Guy's,

I was just wanting a bit of clarification regarding the uptick rule, say the bid is 30.00 and the ask is 30.10 last sale is 30.10 if I place my sell order at 30.10 is this illegal, do I need to place my sell at 30.11 to satisfy the rule and hope the market moves up to meet me?

Also has the uptick rule been repealed in the states therefore short sell at market orders are allowed, I did a quick goggle and there heaps of articles stating that from a couple of years ago but I vaguely recall that this rule was reinstated recently?

Thanks in advance.

 

[Naked shorts]

Hi Guy's,

I was just wanting a bit of clarification regarding the uptick rule, say the bid is 30.00 and the ask is 30.10 last sale is 30.10 if I place my sell order at 30.10 is this illegal, do I need to place my sell at 30.11 to satisfy the rule and hope the market moves up to meet me?

I dont think you should. as long the last move it made was up...you can short.


Only 2 1/2 weeks until the short selling ban on financials is lifted
https://www.asxonline.com/intradoc-...vices/documents/communications/asx_022394.pdf

 

[daveymoo]

Ok, i've been looking around the net for a while and i can't seem to find a clear answer regarding short selling aussie stocks.

I understand how to "go short" using cfd's. I have also read briefly about options.
Is there any online brokers around(and in pref. in Oz) or any way to just short sell an aussie stock?

Or are cfds and options the only way to go short.

Basically i want to take up some short positions without the margin.... It must be possible?

Thanks in advance for any help.

Dave

 

[CamKawa]

I understand how to "go short" using cfd's. I have also read briefly about options.
Is there any online brokers around(and in pref. in Oz) or any way to just short sell an aussie stock?

You could go short with IB but as they say on their web site they don't have any stock to go short with which is a bit crap In fact the whole of Asia and most of Europe is sold out.

The other kinda option is MQ Prime but when I looked into it they aren't entirely up front with regards to either fees, using words like "starting from X.XX%" They are also a bank and you may find they offer they kind of customer service akin to being in a dominant market position with the government in your pocket.

Or are cfds and options the only way to go short.

With CFD's managing risk maybe difficult and the interest charged maybe high. Options I believe are better more flexible option but they are a complex product to trade. Also there's f'all trading in the ASX options market so you may find heading to the US better. In fact if you want to go short with either stocks or options heading to the US maybe better all round and just forget about the ASX. FYI the US market closes at 8:00am Mel/Sydney time.

 

[CamKawa]

You could go short with IB but as they say on their web site they don't have any stock to go short with which is a bit crap In fact the whole of Asia and most of Europe is sold out.

Which might be sign that it's time to go long. lol

 

[knocker]

Which might be sign that it's time to go long. lol

How about it is time for all the self proclaimed market gurus to eat dirt lol

 

[CamKawa]

How about it is time for all the self proclaimed market gurus to eat dirt lol

WTF is that suppose to mean?

 

[daveymoo]

Cheers Cam. I have looked into MQ Prime. Seems like a good option. I like the fact that you can trade shares and Cfds on one platform.
Cheaper than Etrade whom i'm currntly with. I don't understand how etrade charge monthly fee of $80(with no trades) and MQ Prime is free.

 

[inenigma]

I like the $6 minimum fee of IB. It beats the cr@p out of either etrade or BellDirect who I'm currently with. Think I just might switch.

 

[apra143]

I like the $6 minimum fee of IB. It beats the cr@p out of either etrade or BellDirect who I'm currently with. Think I just might switch.

Just be aware of the required minimums: http://www.interactivebrokers.com/en/accounts/fees/minimumDeposits.php?ib_entity=llc

 

[GFD]

Is anyone short selling Australian shares directly, and who are the brokers offering this service in the market? CFDs, ETOs and other leveraged products are not of interest to me.

Macquarie Prime has high fee's at 2%, plus stock lending charge and other fees per trade which add to a handsome sum, particularly for retail traders with say $10K per position. Of concern is their policy that their margins vary minute by minute and there is a risk they will close your position for early re-delivery at anytime, so you have to keep a buffer of cash in the trading account.
http://www.macquarie.com/au/advisers/solutions/online-trading/macquarie-prime

There are no shares available to short with Macquarie at the moment.
https://www.macquarie.com.au/emgonline/portal/web/guest/marginrates

IB has no stocks available to short from their list at present. Haven't checked the fees yet.
https://www.interactivebrokers.com/en/index.php?f=14527

I am not endorsing these sites above or their content.

 

[skyQuake]

CFD providers are a pretty good bet - IG Markets, CMC have fairly large borrow lists and are way cheaper than macq