So no more day trading?
http://www.cse.lk/cmt/upload_cse_announcements/7821317101794_.pdf
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godswen wrote:Did yall see the new announcement! So it's gonna be; you pay first then you get the shares!
So no more day trading?
http://www.cse.lk/cmt/upload_cse_announcements/7821317101794_.pdf
innam wrote:
Actually day trading can still take place but you may need to have a margin account or a credit balance in your account in order to make payment for the buy side of the transaction, once you make the sale the proceeds will net off the margin/credit to your account.
That is the theory but the CSE/SEC has a tendency to muck things up when it comes to practise.
Last edited by slstock on Tue Sep 27, 2011 3:44 pm; edited 1 time in total
godswen wrote:
And do we really need DVP here in CSE?
zen wrote:Gyuz I don't understand.. What's the difference between this and the current system? When I buy shares, my 'cash available for withdrawl' goes down and the 'portfoilo value' goes up. When I sell, it happens vise versa. What's the difference?
zen wrote:So it only affects people who use margin? If that's the case, it's good. It makes the market more predictable, trends will not be interrpupted and we won't have face times like these.
But what happens to a guy who sell to a person who isn't paying on the spot. A sale happens but it could be cancelled???
A question may be raised due to fear, uncertainty & doubt. Similarly, same question may be raised to create fear, uncertainty & doubt. One should have the wisdom to know the difference, given the fact that this same question has been posted under three different threads.Kaish86 wrote:If i sell something at profit, and on 3rd day during settlement if the share price is not favouring buyer's earlier decision and he refuses to settle, will the original trade is cancelled. Can't seller get his money for his original decision. This is unfair.
As per Current system either buyer pay or not, seller is guaranteed of cash since broker has to pay on his own account. Is DVP is simply transferring settlement risk of the broker to the seller.
Can anyone explain on my 1st paragraph
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The buyer cannot retract and hence the trade will not be cancelled. The buyer's broker is bound to sort out any issues that may arise from the trade with the buyer. You will get your payment. Any comments from others?Kaish86 wrote:If i sell something at profit, and on 3rd day during settlement if the share price is not favouring buyer's earlier decision and he refuses to settle, will the original trade is cancelled. Can't seller get his money for his original decision. This is unfair.
As per Current system either buyer pay or not, seller is guaranteed of cash since broker has to pay on his own account. Is DVP is simply transferring settlement risk of the broker to the seller.
Can anyone explain on my 1st paragraph
probably this might be only applicable for pre arranged transaction.niru wrote:Trade can be cancelled.
But, Seller will be compensated for the 3 day price loss and opportunity loss.
CDS will charge this compensation from buy broker, buy broker may charge it from buyer.
Compensation amount = qty x Max(0,P) + 0.8% of transaction value
P = sale price - highest trade price between trade date settlement date
niru wrote:Trade can be cancelled.
No security movement from seller's account.
But, Seller will be compensated for the 3 day price loss and opportunity loss.
CDS will charge this compensation from buy broker, buy broker may charge it from buyer.
Compensation amount = qty x Max(0,P) + 0.8% of transaction value
P = sale price - highest trade price between trade date settlement date
So what if the share price goes up, the seller wins, buyer losesjks wrote:If u failure to settle the payment, this particular trade will be canceled.
this is really happen we never loss if shares price goes down payment made to stock broker not paid transaction cancelled.we win seller goes bankrupt.
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