Trading without money

[doritos123]

Just curious

I noticed that Commsec takes 3 days to settle transactions. Is it possible to make a buy transaction and then sell on the same day for a profit without having any or very little money in the account?

I am fully aware of the implications if the share price goes down or if you don't have any capital to back it up, just wanted to know what is or isn't possible.

 

[GreatPig]

I don't know specifically about Commsec, but I think most online brokers won't let you buy unless you have sufficient funds available in the settlement account at the time of purchase.

GP

 

[quinny]

hi doritos,

I am not familiar with many online broking sites but I know that for NetWealth and Heritage you can get a $25,000 credit limit on top stocks.

Here's what it says on the Heritage site:
"Trading Credit Limit
You can buy up to $25,000 of shares on credit online provided they are in the Top Stocks. The credit limit is adjusted up or down depending on your account balance and outstanding buy orders."

 

[mxd]

comsec does, I am not too sure how much though. The ASX have T+3 at the moment, which means you must pay in 3 days, they are talking about droping it to T+1 in the future I think

Just curious

I noticed that Commsec takes 3 days to settle transactions. Is it possible to make a buy transaction and then sell on the same day for a profit without having any or very little money in the account?

I am fully aware of the implications if the share price goes down or if you don't have any capital to back it up, just wanted to know what is or isn't possible.

 

[ghotib]

I use Commsec but not Comm Bank. I hope Commsec never knows how much money I have in my settlement account. All they need to know is that their direct debit has been honoured. Anything else is between my bank and me.

That said, I've never done what you're suggesting. I think I'd transfer money into the account to cover my purchase anyway, just in case something went wrong. It should only be overnight after all, and when you don't have much money you REALLY don't want to waste it on fees or charges.

Why not ask Commsec though?

 

[money tree]

anyone who thinks T+3 is actually a good idea has less sense than George W

 

[mit]

You can in theory with Comsec. There are some rules around how much and what shares. I tried it for awhile with an overnight but I started to get hit with non-payment fees. That is I would buy on day 1 - sell on the next days open but they would still attempt deduct the total of the share on day 3 and repay me the next day. So I gave it up. Easier just to have a margin account.

MIT

MT -- whats wrong with T+3?

 

[bvbfan]

Clearly T+3 is a joke, I bet quite a few players have bought over the years on momentum. AUM is a classic example, now that it's halted the fun will be when it relists, early selling then a rally?