why need a broker
June 7th 2008 10:41
MATURE CONTENT
Read More
making money from shares
June 7th 2008 10:33
MATURE CONTENT
[ Link ]
Posted By: daniel besedin - Category: No Category
Comm Sec Stop Loss program
June 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.
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.
| 103 |
| Vote |
Comments (1)
Add Comments[ Link ]
Posted By: daniel besedin - Category: No Category
Welcome message
June 5th 2008 04:50
| 87 |
| Vote |
[ Link ]
Posted By: daniel besedin - Category: No Category
More Posts
4 Posts
4 Posts dating from June 2008
Email Subscription
Receive e-mail notifications of new posts on this blog:
[ View Blog Summary ] [ Create A New Post ]
daniel besedin's Blogs
Moderated by daniel besedin
