Friday 11 October 2019

[Post 96] Learning investing/trading together part 21:How to purchase a stock?(Standard chartered) part 2

Continue from the last Learning investing/trading together post ...



Some key term to note...

Trading A/C No:
  • should have been auto fill
Counter code:
  • Stock code as the name implies, SPDR STI ETF(ES3)
Action:
  • Click buy to buy stocks and click if you are selling the stock
Order quantity:
  • 100=SGX( 1 lot size)
Buy order price:
  • The price that i want to buy the shares at
Order value:
  • Order quantity x Buy order price
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)
  • Always choose Limit order!!!
Valid for(until):
  • A 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.
Settlement amount:
  • The settlement account should be fixed
9)Key in order quantity

I have key in 100 shares
SGX(lot size)=100 shares

10)Key in the Buy order price

The price that I would like to bid:$3.274

You may ask why $3.274?

Remember the offer from the last post,which states 3.275?
  • What i am doing here is trying to bid lower at 3.275 by putting the bid price at $3.274 but... this may not get my order to fulfill instantly and my 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 $3.275, but you want to buy it cheaper at $3.274
Can you bid at 3.275 or higher?
  • Yes, you can put the bid price at $3.275 or higher(Note: this will get your order fill instantly because you are purchasing the stock at the selling price(Ask or Offer))
  • 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)
11)Click the submit button after keying in,you will be shown the confirmation form below 


A few more key term to note...


Order Value
  • $327.40
Total Fees
  • I mentioned before in my post a few ago about the standard commission
  • Currently, the brokerage fee for DBS cash upfront account is 0.18%, min SGD10
Clearing fee

  • Not shown,refer to DBS vickers post
  • Total Contract Value(100%)=$327.40
  • Clearing fee(0.0325%)=$0.106405
SGX trading fee

  • Not shown,refer to DBS vickers post
  • Total Contract Value(100%)=$327.40
  • SGX trading fee(0.0075%)=$0.024555
GST
  • Not shown,refer to DBS vickers post 
  • GST is 7% of Comission + Clearing fee + SGX trading fee 
  • GST=7%(the magic number)
  • Commission + Clearing fee + SGX trading fee =100%
  • $10.00 + $0.106405+ $0.024555=100%
  • 100%=$10.13096
  • GST=$0.7091672
Total Fees

  • Not shown,but you can calculate from the above figures
  • Commission + Clearing fee + SGX trading fee + GST=Total Comission and fees
  • $10.00 + $0.106405 + $0.024555 + $0.7091672= $10.8401272
  • Total Comission and fee = $10.84
Total amount

  • Order Value + Total Fees =Total amount
  • $327.40 + $10.84 = $338.24
  • Indicative total proceed=$338.24

*Do note that all live prices have a ten minute delay,if you would like updated live price,i you have to call up standard chartered to arrange for it,you will have to pay extra cash for it though:)


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:)