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Title: TSX: trading multiple times Post by: mo_rocks on October 22, 2010, 01:36:50 PM Hi - I'm new hear and I'm quite new to trading on the market, though I've paper traded a combination of the SSP 3,4,5 portfolios for half a year. I've started doing some real trading and have same some small profits.
A question I have is - somewhere in my reading I seem to remember someone talking about a charge or fee related to trading activity. It regarded buying and selling the same stock multiple times in a day - basically the fee was to discourage people from creating or adding to stock price volatility. I'm not sure if I understood the remark correctly - just wondering if someone picks up on what I may have read and can clarify. Also note that it might have been related to a US exchange, not the TSX. For now I'm trading only on the TSX, and am wondering if this fee/charge does exist for the TSX. Thanks in advance for any replies/explanations given. Title: Re: TSX: trading multiple times Post by: DCA on October 25, 2010, 04:35:42 AM If you do not have a margin account then the stock must be held for three (3) days before you can sell it.
But other than that I do not know of any fees for multiple trades on one stock in a day. If they exist, I guess I have never hit them. D Title: Re: TSX: trading multiple times Post by: mo_rocks on October 25, 2010, 09:23:00 PM Thanks for the reply.
So if I have a margin account, meaning I borrow money to buy and sell stocks, I can do that as soon/often as I want - but if I have an account with my own $10k I have to hold them for 3 days? Do you have any recommended sites where I can read up on rules like this? Thanks again Title: Re: TSX: trading multiple times Post by: garilou on October 28, 2010, 03:02:33 AM Hi DCA, Hi mo_rocks,
It's been long time I have not posted on the forums. DCA, I am surprised by you reply. I have 2 margin accounts and 2 shorting accounts (CDN and US). But My RSSP is NOT a margin account, and I have never have been obliged to keep a stock for 3 days! If I buy in the morning and somewhere during the session, I have an acceptable gain, or if to the opposite, I see that I made a wrong step, I sell right away, the same day, and with no extra fee as a normal transaction. OK, I've never gone as far as buying and selling the same stock "multiple times" in the same day, but what I have done was buying, selling (from my RSSP), and shorting the same stock (in my shorting account) the same day. mo_rocks, I do not know all the rules, but I know that what is not allowed, (although probably difficult to trace) is to place orders that you do not intend to fulfill. Some people make huge bids to boost the price of a stock, and then cancell those orders in the last second. In order to do that, I've got to be a big trader, with extra fast systems, and the possibility to see Level 2, which is pretty expensive. Maybe this is what you were referring to. I doubt that it should be of any concern for you by now. Leave that kind of trading to the big banks ;) Especially if you stick to the SSP orders. Louise Title: Re: TSX: trading multiple times Post by: mo_rocks on October 28, 2010, 10:39:08 PM Thanks to all for the replies.
Title: Re: TSX: trading multiple times Post by: DCA on October 30, 2010, 02:37:22 AM Hi Garilou,
Should be no surprise there. Those are indeed the rules. However, from my personal experience it is rarely enforced. In the fine print of Canadian online brokerage accounts there is usually the line on the proscribed penalty - namely that they will put your account for 90 days on a strictly cash basis. In order to buy stocks you must have the full cash balance in your account when the order is placed and they will not credit your account with the cash from the sale until the three days have elapsed. D |