| Latest Forum Topics / Others |
 Post Reply
|
|
What if you short and stock is suspended ?
|
|||||
|
ten4one
Master |
24-Jan-2008 12:55
|
||||
|
x 0
x 0 Alert Admin |
cyjjerry, borrowing scripts from Stockist is to borrow from the Brokerage Company (most have Stockists who buy shares as stocks on behalf of The Company for selling or lending to clients or their own House Traders). It is like borrowing cash temporary to repay immediate due debt. Of course, there're terms and conditions and they're different in different Organisations and for different Clients - you've to make your own arrangements with the Firm that you deal with. Cheers! | ||||
| Useful To Me Not Useful To Me | |||||
|
huatah
Veteran |
24-Jan-2008 10:12
|
||||
|
x 0
x 0 Alert Admin |
zanetti.. actually your remisier will provide tip-top information regards to your concern. anw.. once Short and cant recover within the day.. it's beyond your control liao.. tat's de risk Shortist had to take.. funny.. nickyng de master of all Shortist didn't reply in tis forum.. heehee.. de best tat if u wan to play Short.. open a CFD account. safer for u.. |
||||
| Useful To Me Not Useful To Me | |||||
|
|
|||||
|
zanetti
Member |
24-Jan-2008 09:42
|
||||
|
x 0
x 0 Alert Admin |
if i didnt manage to buy back on the same day, is there any way that i can buy back on the 2nd or 3rd day, and not wait till CDP buys in for me on the 4th day ? as in, definitely there's some way right ? | ||||
| Useful To Me Not Useful To Me | |||||
|
Alligator
Veteran |
24-Jan-2008 08:40
Yells: "learning from past " |
||||
|
x 0
x 0 Alert Admin |
You may just read up from CDP website on what is called BUYING-IN Market, this is when the seller cannot deliver on due date and CDP shall step in to close the 'failed transaction' on the buy-in market: I just copy their website material here for ease of reading : Buying-in Market There is a high settlement success rate in the Singapore securities market. However, in the event of failed settlement, CDP steps in and closes off any outstanding position in the buying-in market. This is conducted on the day following due date. Buying-in is effected against the SGX-ST Member Company, which has executed the failed trade. On the day of buying-in, CDP enters a list of securities to be bought-in into SESOPS at 11:15 a.m., naming the security, the number to be bought, the trade date and the price. The price bid begins at two minimum bids above the closing price of the previous day, the current last transacted price or the current bid price, whichever is the highest. CDP will seek recovery of any loss in closing off an outstanding position from the respective Member Company. The Member Company will in turn seek recovery from its client. Settlement for the buying-in market is trade day. CDP retains the brokerage commission on the trade. |
||||
| Useful To Me Not Useful To Me | |||||
|
winnifong
Member |
24-Jan-2008 07:12
|
||||
|
x 0
x 0 Alert Admin |
was informed that force buy/sell is executed at least 2 bids above queue. It will spread wider if the queue vol is not sufficient to satisfy the action | ||||
| Useful To Me Not Useful To Me | |||||
|
|
|||||
|
cyjjerry85
Elite |
24-Jan-2008 00:25
|
||||
|
x 0
x 0 Alert Admin |
hi Zanetti...to answer ur query below: when you short and did not buy back within the same day...tt means CDP will buy back for u automatically on the 4th day...no matter wad price and no matter what loss u incurred...and tt could be really painful if tt counter u shorted rise...if i m not wrong, CDP will even buy back at 1-2 bids higher of the 4th day opening/closing price...making more towards their advantage...its a price one gotta pay for shorting.... however, CFD would be a much better alternative if u like to short a market |
||||
| Useful To Me Not Useful To Me | |||||
|
zanetti
Member |
23-Jan-2008 21:00
|
||||
|
x 0
x 0 Alert Admin |
thank you everyone for their replies. btw if i'm caught in a situation as what cyyjerry85 describe - shorting but did not manage to buy back within the same day, is there any way i can buy back on the second or third day ? ten4one - what do u mean by borrow scripts from stocklist ? |
||||
| Useful To Me Not Useful To Me | |||||
|
ten4one
Master |
23-Jan-2008 20:48
|
||||
|
x 0
x 0 Alert Admin |
If you short (confirmed done)and the counter is suspended b4 closing and you couldn't cover your short on the same day. Therefore, you're allowed to cover your short when the counter resume trading on the very 1st day. Or you could borrow scripts from Stockists to off-set the shorts at a small fee if you're concerned that the deal is against you. Even on-line trading, you could contact the Company and negotiate a deal on such matter (of course at a fee). Cheers! | ||||
| Useful To Me Not Useful To Me | |||||
|
|
|||||
|
chinpk
Member |
23-Jan-2008 09:29
|
||||
|
x 0
x 0 Alert Admin |
cyjjerry85: Thank you for the advise. |
||||
| Useful To Me Not Useful To Me | |||||
|
mike8057d
Veteran |
23-Jan-2008 08:48
|
||||
|
x 0
x 0 Alert Admin |
Zanetti, you said in here that your broker called you....so you should be able to ask him/her on this question. Cheers |
||||
| Useful To Me Not Useful To Me | |||||
|
huatah
Veteran |
23-Jan-2008 08:47
|
||||
|
x 0
x 0 Alert Admin |
Hi Kensonic77, if u referring to brokerage fees, not tat i noe of that they r higher. I could b wrong. check wif your remisier better. | ||||
| Useful To Me Not Useful To Me | |||||
|
Kensonic77
Veteran |
23-Jan-2008 08:42
|
||||
|
x 0
x 0 Alert Admin |
huatah... For short-sell, brokerage is higher than normal buy & sell right? Thanks |
||||
| Useful To Me Not Useful To Me | |||||
|
|
|||||
|
huatah
Veteran |
23-Jan-2008 07:48
|
||||
|
x 0
x 0 Alert Admin |
Zanetti.., if u short or intend to play contra within T+3 or 5. Whatever the case, on the due date, it must be covered. For Short, Remisier will consider it as contra losses within that day. As for those T+3, you may b granted up till T+5 depending on your remisier. For those T+5 will b granted to T+6 (subject to remisier again). If all grace given, still under suspension, it will be treated as contra loss. Hope this explain. |
||||
| Useful To Me Not Useful To Me | |||||
|
limhc891
Member |
23-Jan-2008 01:56
|
||||
|
x 0
x 0 Alert Admin |
CFD is margin trading. So the profit and loss are amplify. There are borrowing cost incur if u short. If you short , and the company got suspend within the same day, SGX will buy-in for you at a later date with a price you CAN'T determine or control. Remisier can't do much to help. Similarly if you contra, and the company got suspended, your remisier can help you to extend the payment due date provided ur credit worthiness is good. If you buy or sell (short) beyond your means, your remisier will recover the payment from you. In the event you cant pay up, then you may be sued (remisier may need to make good of the loss to the brokerage firm). in serious cases, you maybe made a bankrupt. Call up the dealer or remisier to ask. That why u r paying them commission. :) |
||||
| Useful To Me Not Useful To Me | |||||
|
cyjjerry85
Elite |
23-Jan-2008 01:11
|
||||
|
x 0
x 0 Alert Admin |
CFD means Contract-For-Difference...you can read up more what it is on www.poems.com.sg and www.limtan.com.sg and www.cmcmarkets.com.sg shorting using contra is dangerous because u cannot hold your position for more than a day unlike a buy position which is normally T+3...let me give u a simple example...let's say on Monday it is very bearish...markets all down and u short a counter at $0.50...but on Tues onwards till Friday it became very bullish and rebounded upwards...u can't control and foresee the market a few days ahead right? so it is dangerous in this sense... you might possibly find yourself buying back at $0.60 example? u won't be able to cut loss...letting your loss flow and will have sleepless nights as for ur query on if the stock is suspended more than 4 days...well....curious to find out too...anybody knows? |
||||
| Useful To Me Not Useful To Me | |||||
|
zanetti
Member |
23-Jan-2008 00:56
|
||||
|
x 0
x 0 Alert Admin |
wat's CFD ? btw why do u say that it's very dangerous to short through internet trading ? anyway, the first time i short i didnt buy back on the same day, my broker called and tell me that it will automatically buy back by the fourth day. But what i'm curious is that if i short and the stock is suspended for more than 4days, what actually will happen ? |
||||
| Useful To Me Not Useful To Me | |||||
|
cyjjerry85
Elite |
22-Jan-2008 23:23
|
||||
|
x 0
x 0 Alert Admin |
Chinpk: yes u can do shorting through internet trading...however it is VERY dangerous and not advisable by many brokers themselves to the clients to do so...short-selling must be covered back within that trading day itself...Sell first, then Buy if u like to try the safer method, CFD will be a gd alternative... Zanetti: i met with this problem when i did contra...i actually called my broker to extend an extra day for me...become T+5 (i m having T+4 currently)..so she actually obliged ....however for shorting the counter and it gets suspended...hmmm...i m also curious about tt... |
||||
| Useful To Me Not Useful To Me | |||||
|
chinpk
Member |
22-Jan-2008 20:18
|
||||
|
x 0
x 0 Alert Admin |
I am a on-line trader too, I anyone enlighten me whether can I do shorting through internet trading? Or must go through remisier? Thank you. |
||||
| Useful To Me Not Useful To Me | |||||
|
Manikamaniho
Senior |
22-Jan-2008 19:47
|
||||
|
x 0
x 0 Alert Admin |
Maybe some kind soul can ask their broker for the answer and post it here for the benefit of members? (Me too is totally an online trader) |
||||
| Useful To Me Not Useful To Me | |||||
|
zanetti
Member |
22-Jan-2008 17:16
|
||||
|
x 0
x 0 Alert Admin |
er... never really go through my remisier cos all the way is use internet one. any kind soul willing to answer my question ? | ||||
| Useful To Me Not Useful To Me | |||||
x 0 
x 0