First of all I am very grateful that I found this very informative forum. I am newbie to share trade and have an ambition make my living out of it. I am bit confused with this T+3 trade settlement rule and required funds within that period. I emailed CommSec /which I have an account with/ asked some details about it. They replied me as it quoted below
1. Does this mean I can buy up to $25000 leading shares without any sufficient fund in my account, as long as fund is available on settlement /third/ day?...Your CommSec Trading Account has a natural trading limit of $25,000 for leading stock. This includes $7,500 for non-leading stock which is generally more speculative stocks. This means you are able to trade up to these amounts without any deposit requirements and the funds will be payable the morning of settlement date, which is three trading days after your buy order has executed (T+3)...
...The deposit will only need to equate 50% of what exceeds your trading limit. For example, if you wish to buy $10,000 of non-leading stock this is $2,500 above your natural trading limit for non-leading stock. The market value of your CHESS holdings or a deposit of $1,250 will be required...
2.What if I sell the shares for profit on purchase day or next day before the settlement? In this case, do I ever need to hold sufficient fund for trades I make, if I keep continuously doing intraday or next day trades that offset to each other?
3. If I don't need deposit for trades up to $25000 and only need to hold deposit for 50% of above $25000 of no deposit trade limit, is it correct to assume that my $15000 account can be leveraged up to $55000 ($25000 /no deposit limit/ + $30000 /50% deposit required amount over no deposit limit of $25000/) worth trade account? If I assume, I buy and sell on intraday or next day and don't ever fall into settlement day (asked in question 2) having actually pay $55000 worth trade that when in fact I only have $15000 account?
Sorry guys, the reason I am asking is my English is moderate and I just want to be clear on this CommSec reply of T+3 settlement and required fund as I don't want to get caught in any wrongdoing or penalty related assumptions in my question.