Settlement calculation

ROE · 23 February 2010

This never happen to me before so I just wondering if someone gone through the process. I always has cash ready but not this time

Say I found a compeling stock Y and I bought a whole chunk at XXX amount.

I also lock in some of the profit from other stocks to paid for the purchase

1/2 of the parcel got executed on the same day as I buy stock Y, the other half got executed the next day

when t+3 come do I have to have the money in place to cover for the 1/2 of the parcel that dont get executed on the same day when I bought Stock Y?
or I dont need to worry about it

Trembling Hand · 23 February 2010

What broker you using? for a start I would call them to make sure.

adobee · 23 February 2010

yes you need the $
you can adjust and sell the half unsold at market to cover it ..
if you are with comsec you will get a call and they will take the balance of the cash out two days later.. if you do it a couple of times they will stop your account all together ..

ROE · 23 February 2010

I'm with comsec.

Thanks all for quick reponse, I'm just curious on the settlement calculation
from what I gather I do need the money to cover

I'm not worry or panicking I just want to know the way it works. I do have emergency fund which I dont normally touch, in case thing like this happen and unforseen events ...

time to do the transfer

JohnI · 23 February 2010

This is from an email I got from them when I encountered a similar scenario a few months ago:

"The offsetting policy (contra) follows the following guidelines:
A purchase will be offset against the proceeds of sales executed on the same trading day and the following trading day. (i.e. Buy 1st then Sell (T+1)
The proceeds of a sale will be used to offset against any purchase executed on the same trading day, or the following two trading days. (i.e.Sell 1st then Buy (T+2)).
Any outstanding balance remaining for purchases and sales of shares after offsetting will be automatically settled through your nominated bank account on the third trading day.
[...]
You can compare the contra policy outlined above with your own account financial history by logging into your CommSec account, selecting My Portfolio and then Financials."

ROE · 23 February 2010

JohnI said:
This is from an email I got from them when I encountered a similar scenario a few months ago:

"The offsetting policy (contra) follows the following guidelines:
A purchase will be offset against the proceeds of sales executed on the same trading day and the following trading day. (i.e. Buy 1st then Sell (T+1)
The proceeds of a sale will be used to offset against any purchase executed on the same trading day, or the following two trading days. (i.e.Sell 1st then Buy (T+2)).
Any outstanding balance remaining for purchases and sales of shares after offsetting will be automatically settled through your nominated bank account on the third trading day.
[...]
You can compare the contra policy outlined above with your own account financial history by logging into your CommSec account, selecting My Portfolio and then Financials."

Great stuff so I dont need to cover for T+1 but I do it just in case

Settlement calculation

ROE

Trembling Hand

Can be found on the bid

adobee

ROE

JohnI

ROE

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