Settlement

[ASXNoob]

If i placed a BUY order of $1000 (1000*$1) for share ABC on Monday and then placed a SELL order for the same 1000 shares for $1100 (1000*$1.1) on Tuesday, would I be debited $1000 on Thursday and then credited $1100 on Friday, or would they simply credit $100 on Friday?

Reason I ask is to ascertain whether I would have any funds available to place a BUY order today.

Cheers

 

[bellenuit]

If i placed a BUY order of $1000 (1000*$1) for share ABC on Monday and then placed a SELL order for the same 1000 shares for $1100 (1000*$1.1) on Tuesday, would I be debited $1000 on Thursday and then credited $1100 on Friday, or would they simply credit $100 on Friday?

Reason I ask is to ascertain whether I would have any funds available to place a BUY order today.

Cheers

It depends on your broker and their Ts & Cs.

Unless you specifically request them not to, Commsec, for example, will offset Buys and Sells as follows (This if from their Client Guide):

Unless you tell us not to, we will offset payments when you buy and sell within a short time.

CommSec will transfer the net amount to or from your settlement account when you either:
- Buy shares and then sell shares on the same day or the next trading day.
- Sell shares and then buy shares on the same day or the next two trading days.

 

[ASXNoob]

many thanks!