T+3 questions

[Casual_Investor]

Hi guys,

Being relatively new to the market, it would be great to confirm a few things.

Basically I want to buy stock XYZ as soon as possible and will be selling stock ABC in order to pay for it. How long do I have to wait after selling ABC in order to safely buy XYZ?

As far as I understand, if I sell ABC today, the funds will be available on the 3rd business day not including today. So if I also buy XYZ today, the money will also be taken from my account on the third business day not including today.

Therefore is it safe to sell and then buy a stock on the same day, whilst using the money from one stock to pay for the other?

If the same day is not safe, what is the minimum time period until its completely safe?

The last thing I would want is comsec fining me for insufficient funds, but often I like to drop stocks and pick up others quickly.

Any help is much appreciated.

Thanks!

 

[gfresh]

They will just deduct the difference between the two if settlement day is the same. Well they have always for me.

Funds are transferred out before midnight on the settlement date if you also have a commonwealth savings account.

 

[Casual_Investor]

I have a CDIA account. So are you sure youve sold and bought shares on the same day (with no money previously in the account) and had no issues at all?

Thanks for the help.

 

[motion]

I have a CDIA account. So are you sure youve sold and bought shares on the same day (with no money previously in the account) and had no issues at all?

Thanks for the help.

Hi Casual_Investor I have a CDIA account and do this now and then.. It's ok to do as long as you have done your maths right.... = and if not you get a $35 fee if you do not have enough funds... = ...

 

[Wysiwyg]

Hi guys,

Being relatively new to the market, it would be great to confirm a few things.

Basically I want to buy stock XYZ as soon as possible and will be selling stock ABC in order to pay for it. How long do I have to wait after selling ABC in order to safely buy XYZ?

As far as I understand, if I sell ABC today, the funds will be available on the 3rd business day not including today. So if I also buy XYZ today, the money will also be taken from my account on the third business day not including today.

Therefore is it safe to sell and then buy a stock on the same day, whilst using the money from one stock to pay for the other?

If the same day is not safe, what is the minimum time period until its completely safe?

The last thing I would want is comsec fining me for insufficient funds, but often I like to drop stocks and pick up others quickly.

Any help is much appreciated.

Thanks!

Hi C.I......short term borrowing of funds for trading is fraught with danger.

For example if a) there is a trading halt (locks you into the purchase and you better have the funds by T3 or , b) a sudden sell-off of your shares happens then you sell at an even bigger loss before T3.

It can be done but if a) happens then suffer the consequences.I use my own cash to trade and if I ain`t got it I can`t buy.Let`s face it there is enough risk in the market without short-term borrowing to compounding it.

H.t.h.

p.s. casual "investor"????

 

[MS+Tradesim]

Hi C.I.

I've been with comsec for years and made hundreds of trades and often many in one day. As long as you sell ABC BEFORE you buy XYZ you will be fine. As wysiwyg points out you don't want to buy a share and then have the share you want to sell go into trading halt to throw out your plans. Of course, if this happens you can always just sell the new share the same day if need be but better to avoid this situation to start with.

Never had a problem yet. Never been hit with a late fee.

 

[Casual_Investor]

Thanks for the replies guys...

Yeh that clears a few things up. Obviously this style has risks attached but its good to know that its another option I have .