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Buying and selling shares within the settlement dates

Discussion in 'Beginner's Lounge' started by JSMF, Feb 24, 2016.

  1. JSMF

    JSMF

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    Hey everyone, I'm new to trading shares and i have a few things i need to know that i cant seem to find information on.
    I started my account with $1,000 and I've bought $990 worth of shares yesterday (22/02/16) with settlement on 25/02/16. Tonight i ordered them to be sold (for a small profit). I have also bought $910 worth of shares elsewhere, so both orders (sale and bought) should be executed tomorrow morning (24/02/16) with settlement on 28/02/16. what i would like to know is once settlement for my original bought shares is processed and I'm left with $10 in my account on 25/02/16, what will happen when my sale and my new acquisition of shares are both due for settlement on the same day?
     
  2. JSMF

    JSMF

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    Will i need to deposit $1,000 into my account before monday to be sure the bought shares are covered, or will my broker identify that i have both a sale and a buy due for settlement on the same day?
     
  3. JSMF

    JSMF

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    Can bought shares be settled while at least the price of those shares is due to clear into my account on the same day as result of a sale?
     
  4. ROE

    ROE

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    Depending on the broker, I know comsec they deposit/deduct the differences only ring them up and double check
     
  5. pixel

    pixel DIY Trader

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    If you tell us who your broker is, we may give you a better answer.
    Most brokers will process the sales first, before subtracting the costs of purchases.
    Most, if not all, brokers won't even let you purchase any shares unless they know that the value will be covered on Day T+3 or, from March 7 onward, T+2.
     
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