Friday, 7 December 2018

(Post 64/week 50)Learning investing/trading together part 9:How to purchase a stock part 2?(DBS vickers)

For more information on the various term, please refer to this link

Continue from part 8: How to purchase a stock? (you can read all about it here)

16)Change the account-cash upfront

17)Change the buy action to buy or sell

Some key term to note...

Settlement mode
  • Cash or Cash upfront
  • Choose cash upfront if you are using cash upfront account
Settlement currency

  • The money that you would like to purchase the stock with, for purchasing of US stock(USD) and for purchasing of Singapore stock(SGD)
Stock name

  • Name of the stock itself,in my case it is the STI ETF
Stock Code

  • Stock code as the name implies, SPDR STI ETF(ES3)
Order type
  • The below chart does a good job of explaining the various order type
  • Market order-Buy or sell at the current Ask price(Order get filled immediately)
  • Limit order-Buy or sell at a specific price(Order filled depend on the price you key in, will explain later in the post)
  • There is no stop order for DBS Vickers(correct me if I am wrong)

Order duration
  • A Good for Day order is a limit order good for that business day only. If the order is not filled by the end of the trading day, the order will expire. 
  • This is the order we are going for, for simplicity sake. 
18)Key in the quantity of stock that you would like to buy

SGX(lot size)=100 shares

19)Key in the price that you would like to bid

The price that I would like to bid:$3.095

You may ask why $3.095?

Remember the place order from the last post? (Black circle)

  • The bid price is $3.095(Note: this may not get your order to fulfill instantly and your order will be added to the queue)
  • This is like trying to bargain with a shop seller at a market to buy an item(e.g fish) which is stated as selling for $4, but you want to buy it cheaper at $3.50

Can you bid lower than $ 3.095?

  • Yes, you can put the bid price at $3.094 or $3.00(Note: this may not get your order to fulfill instantly and your order will be added to the queue)
  • This is also like trying to bargain with a shop seller at a market to buy an item(e.g fish) which is stated as selling for $4, but you want to buy it cheaper at $3.50

Can you bid higher than $3.095?

  • Yes, you can put the bid price at $3.100(Note: this will get your order fill instantly because you are purchasing the stock at the selling price(Ask))
  • This is just like buying an item (e.g fish) at a stated price from the shop seller at the market without any question asked, you hand over your money and off you go
What does it mean by having my order added to the queue?
  • Since there is no seller willing to sell(ask) at the price you want(bid), your order is added to a queue
  • A queue is like a database where they store everybody offer whose order is not filled, the order is more likely to fill quickly if you key in the price nearer to their Ask price(selling price)-
  • E.g you key in 3.099 as your price and the Ask price is 3.100(below in the picture

20)Click the confirm order button to place your order(Black circle)

A few more key term to note...

Total contract value

  • The total contract value would be $3.095(the price that I have key in) * 100(quantity) =$309.50
  • I mentioned before in my post a few ago about the DBS Vickers commission
  • Currently, the brokerage fee for DBS cash upfront account is 0.18%, min SGD10
Clearing fee

  • Also mentioned before in this post
  • Total Contract Value(100%)=$309.50
  • Clearing fee(0.0325%)=$0.10
SGX trading fee

  • Total Contract Value(100%)=$309.50
  • SGX trading fee(0.0075%)=$0.02
  • The irony even though, I am doing it DIY...
  • GST is 7% of Comission + Clearing fee + SGX trading fee 
  • GST=7%(the magic number)
  • Commission + Clearing fee + SGX trading fee =100%
  • $10.00 + $0.10+ $0.02=100%
  • 100%=$10.81
  • GST=$0.71
Total Comission and fees

  • Commission + Clearing fee + SGX trading fee + GST=Total Comission and fees
  • $10.00 + $0.10 + $0.02 + $0.71= $10.83
  • Total Comission and fee = $10.83
Indicative total proceed

  • Total Contract value +  Commission + Clearing fee + SGX trading fee + GST=Indicative total proceed
  • $309.50 + $10.00 + $0.10 + $0.02 + $0.71= $320.33
  • Indicative total proceed=$320.33

I will not proceed with the next step as it means that I have purchased a stock. Hope you all learn something from my post, do watch out for my next post:)


  1. Thought I'll drop by and say, nice post! If I was a newbie, this is the kind of step-by-step posts I would love/need to see. Don't worry, even if people aren't commenting, they ARE reading and learning from your post. DBS Vickers cash-upfront is also my preferred tool ;)

    1. Thanks for reading my post,maybe we can exchange tips,hahaha

  2. I am reading. Thanks for posting all this. I'm following all posts from this series.