why need a broker
June 7th 2008 10:41
MATURE CONTENT
daniel besedin
AUSTRALIA
Joined June 5th 2008
Number of Posts:
5
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0
Karma:
5
Recent Posts Comm Sec Stop Loss programJune 5th 2008 04:56
To make the first steps into the world of share trading a bit easier Commonwealth Securities ,Australian DIY investor service provider, has introduced a Stop Loss program 'a versatile new tool that can help you lock-in gains and limit losses to an acceptable level.'It works as a standing order providing you with a controlled exit strategy from a particular share. You identify specific shares and instruct Stop Loss to place these on the market for sale automatically when the price falls to a pre-defined level.Stop Loss saves you time as you do not have to monitor market all the time.Once you decide which share you wish to sell and set an acceptable threshold below the share's current trading price, you call CommSec and arrange a Stop Loss Trigger and a Stop Loss Limit Order.
Let's say your shares trading at $10.00 and you want to ensure that if the stock falls, you sell out at no less than $9.60. Through CommSec Stop Loss, you would set a Stop Loss Trigger at $9.80 along with a Stop Loss Limit Order at $9.60. Should the shares trade at the trigger point of $9.80 or lower, your limit order will be submitted to sell the shares at no less than $9.60. There are two ways to use Stop Loss:you can lock in any gains you have already received or limit any losses you are willing to take. There two options with fees; you can elect to pay an "Up front" Stop Loss fee of $9.95 plus standard brokerage if a sale goes through,(You pay the "Up front" fee regardless of execution) or you can choose to pay "On execution" of the order and only pay $14.95 plus standard brokerage when a sale goes through. You do not pay the "On execution" fee if the trade is not executed. Stop Loss is an innovative and risk minimizing product yet you need to understand that it is not a panacea from market losses. To register for the program you need to be a Comm Sec client and have a direct debit with them.
Welcome messageJune 5th 2008 04:50
Stop Loss program from Comm SecJune 5th 2008 04:46
Greetings to all those creatures who decided, or yet to decide, to venture into the mysterious world of shares trading. My brother's wife has made 60 000 out of 10 000 AUD in one year. So, inspired by her financial genius (or sheer luck) I am willing to take the risk and jump off the "routine physical work" building and try shares trading. Welcome aboard the learning ship as I will publish regular reports from every virtual island of financial information on my route.
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