Trading with more than is in your CommSec account

[JackBauer]

Is it possible to daytade with a standard CommSEC account, units of shares worth more than is in the cash account, assuming you sell before closing? No margin lending or CFD's.

Say $5k is in the account.
I buy $10k worth of shares at $1 per unit.
Sell shortly later at $1.01 shares a unit.

1% increase is transacted to cash. $10k is neither taken or given from the cash account.

Further, if there were a 1% loss, would only %1 would be taken from the account at the end of the day? Equaling a $100 loss.

 

[SmellyTerror]

Yep.

Not sure about the numbers, but I had about 60k in shares with Commsec, and was day trading between 30k and 45k without a cent in my cash account, and no margin facilities at all.

It's to do with how much they trust you to pay in the T+3 period. They start by letting you buy $7.5k (I think), and ramp that up as you gain a portfolio / pay off the shares in the T+3.

'Course, their brokerage ate a big chunk of my day-trading profits and the order entry is slow as hell, so even with that free money it wasn't really worth it for me, and I went elsewhere. But if they work for you, good luck!

 

[nunthewiser]

And what will you do if the stock goes in a halt for a day or more?

Better have access to some quick cash darl

 

[JackBauer]

And what will you do if the stock goes in a halt for a day or more?

Better have access to some quick cash darl

Stick to high volume stocks, if that's what you mean by halt. Not to mention that I'm thinking in terms of minutes here.

 

[nunthewiser]

oh dear

good luck

 

[nunthewiser]

I think my last post may have sounded scornful .. im sorry .......it was meant to be kinda .......no offense intended bud ......

PLEASE ...... visit www.asx.com.au

and just have a read up on a few terms as in " trading halts " ...etc etc ....... it MAY help m8 if gambling with other peoples money that needs to be paid back on a daily basis ......

Sorry for my initial reply .

Good luck with the markets m8 and SINCERELY hope you reconsider using commsecs cash for the moment and use your own only first until you get a grasp on the rules and lines in the sand out there .

Be well

a.nun

 

[So_Cynical]

Not hard to see how some people can get themselves into big trouble. :fan

 

[JackBauer]

The query was entirely theoretical. Besides from not actually "having" the cash in the account, its no more risky than say, short selling, is it not?

 

[So_Cynical]

The query was entirely theoretical. Besides from not actually "having" the cash in the account

Jack your talking about buying something without the money to cover the purchase....even hypothetically its a bad idea, similar to driving around without insurance...sure you can do it and get away with it, but is it a financial sound idea...no.

 

[Julia]

Stick to high volume stocks, if that's what you mean by halt. Not to mention that I'm thinking in terms of minutes here.

What makes you think high volume stocks will never go into a trading halt?

 

[Unnamed User]

What makes you think high volume stocks will never go into a trading halt?

Ignorance

 

[JackBauer]

What makes you think high volume stocks will never go into a trading halt?

The statistically unlikelihood of a high volume stock going into a trading halt exactly a minute after buying it.

Calm down guys, I'm not actually planning on naked trading with air here. I was just wondering if it was possible, as SmellyTerror outlined. Though, trading $30k in air seems a bit much.

 

[adobee]

I am pretty sure if I make a buy with money I dont have the statisticall chance of it going into a trading halt for me is about 99% plus then it will be held of the market for a week or so ... and then the mobile will start ringing ... and then i will be in some deep s^&t !