ASB and t+3

[marknz88]

Just a quick question that I think I know what the answer is, but just wanting confirmation.

Im with ASB securities as my broker. Now I have never bought shares and sold them the same day, generally im a Longer Term active investor.

However yesterday I thought I would try some short term plays. The problem is that when I am going to sell them right now, I get a warning message stating "Warning!! - The quantity of shares you have entered exceeds our records of your current holding."

So I'm assuming since it hasnt been T+2 days since I purchased them, I cannot sell them until the 7th?? i.e. tomorrow?

This seems quite ridiculous to be honest (not that I will be losing money YET, but if there was a huge drop then how would me stop loss be executed?)

Any insight into this would be appreciated and possible other brokers that will allow me to day trade every now and then.

Thanks

edit// t+2 (for buying shares) the title should read

[shasta]

Just a quick question that I think I know what the answer is, but just wanting confirmation.

Im with ASB securities as my broker. Now I have never bought shares and sold them the same day, generally im a Longer Term active investor.

However yesterday I thought I would try some short term plays. The problem is that when I am going to sell them right now, I get a warning message stating "Warning!! - The quantity of shares you have entered exceeds our records of your current holding."

So I'm assuming since it hasnt been T+3 days since I purchased them, I cannot sell them until the 8th??

This seems quite ridiculous to be honest (not that I will be losing money YET, but if there was a huge drop then how would me stop loss be executed?)

Any insight into this would be appreciated and possible other brokers that will allow me to day trade every now and then.

Thanks

Remember ASB use a T+2 (Buy) & T+3 (Sell) system...

You must have the funds inplace also, wouldn't hurt to give them a call as it's more there records don't show you owe the shares, therefore cannot sell what you don't own!

If you bought something else you wouldnt have the issue i'm sure...

[marknz88]

Yeah I might give them a call just to clarify exactly :)

Being a student though, I dont have the ability to have spare funds sitting in my account all the time to use to purchase other shares. Its more like I get a some money in, and invest it all bar enough to cover my brokerage in the need that I need to get out within a few days/weeks, until I can save up more money to invest in a few weeks time.

Hence yesterdays ST play was to increase the funds I had accrued over the last few weeks thinking I could scalp a quick 10-20% and sell the next day giving me more $$$ to invest into a longer term play in the coming weeks if one arises.

Turns out I cant empty my account into a company and then sell out same day/next, before the dow tanks and I potentially end up in the red :(

[shasta]

Yeah I might give them a call just to clarify exactly :)

Being a student though, I dont have the ability to have spare funds sitting in my account all the time to use to purchase other shares. Its more like I get a some money in, and invest it all bar enough to cover my brokerage in the need that I need to get out within a few days/weeks, until I can save up more money to invest in a few weeks time.

Hence yesterdays ST play was to increase the funds I had accrued over the last few weeks thinking I could scalp a quick 10-20% and sell the next day giving me more $$$ to invest into a longer term play in the coming weeks if one arises.

Turns out I cant empty my account into a company and then sell out same day/next, before the dow tanks and I potentially end up in the red :(

There will be plenty of opportunities when the markets swing back, perhaps instead of chewing into capital with brokerage (& potential FX exposure), over trading may not be your best option.

Don't get caught up chasing a 10 or 20% daily profit, unless you are using extensive TA to buy/sell, even then i'd stick to bluechips.

ASB Sec pay about 5-6% on the CMA don't they, no harm letting it build up + interest until a suitbale target comes up & you have the funds available.

PS, I have over 50 companies on watch at any one time covering all sorts of sectors!

[OldRider]

Was the purchase on NZX or other exchange?

For ASX, chess registration as opposed to issuer sponsored makes a difference as well.

I expect a call to ASB will clarify how things work.

[marknz88]

Cheers shasta and oldRider

The trade was on ASX.

And yeah it was due to the t+2 days that I wasnt able to sell them since the funds still havent been taken from my AUD account. Tomorrow morning they would have been settled however and I will be fine to sell/hold.

I was alsways under the impression that even tho the funds hadnt been settled, you could still sell and then re-buy shares as long as you did not exceed what you had in your account.

I guess I will stick to Long term plays so brokerage doesnt eat away to much at my margins, although it was fun pretending to be a day trader for a day ;)

[AMR]

ASB brokerage at $30 here is quite steep compared to the aussie brokers. You have few players touting $20 brokerage (Commsec?) and if you are keen on using nominee accounts they can go as low as $6-$8. Now that is daytrading territory.

[marknz88]

Hmm now I do feel quite silly.

After talking to ASB it turns out, the reason I couldnt sell out was because I forgot I still had my stop-loss sitting in the order que hence it wouldnt let me sell untill I had cancelled it >_< d-oh.

ASB do allow you to sell shares as soon as you have purchased them, and it had nothing to do with settlement dates as I suspected.

Good to clear that up however so I know for future!!

Yeah $30 is a bit steep, but looking at e-trade they charge $33AUD per trade for the first 10 trades.

ASB is fine for me at the moment. Once I start getting more capital/trade more often I may consider the other alternatives that are around.