Trading

There are a range of strategies that can be used to pre-define entry and exit points for a given security, including Falling Sell, Rising Buy, Falling Buy, Rising Sell, Trailing Buy and Trailing Sell.

Falling Sell (Stop Loss)

A Falling Sell may help you lock in gains or limit losses in a falling market. A Falling Sell order may help you to sell some or all of your client’s holdings in a company if the security price falls to the level you have set as your trigger.

Example

For example, you buy 1,000 units of XYZ Ltd at $10 per unit. You want to limit the losses of your investment, so you set a Falling Sell Trigger at $9.50, with a Falling Sell Limit Order to sell your units at no less than $9.43.

In this example, the market price for XYZ Ltd reaches $9.50 and your limit order is submitted to the market* to sell XYZ Ltd at no less than $9.43 per unit. Your stock will be sold if there are sufficient buyers in the market willing to buy at a price of $9.43 or higher.

Rising Sell (Take Profit)

A Rising Sell may help with taking a profit when a security price rises. A Rising Sell order may help you to sell some or all of your holdings in a company when the security price rises to the level you have set as your trigger.

Example

For example, you have been watching the price of XYZ Ltd, which has been trading at $4.00 per unit and appears to be rising. You could set a Rising Sell Trigger with a trigger price of $4.40 and a limit price of $4.33.

In this example, the market price of XYZ Ltd reaches $4.40, your limit order will be submitted to the market* to sell XYZ Ltd at no less than $4.33. Your stock will be sold if there are sufficient buyers in the market willing to buy at a price of $4.33 or higher.

Rising Buy

A Rising Buy may help you take advantage of a security that's on the rise. A Rising Buy order may help you to buy a security when the unit price rises to or above the level you have set as a trigger. You also set a limit price above the trigger price (setting the maximum price you are willing to pay for the security).

Example

For example, you are researching the security price of XYZ Ltd, which is currently trading at $9.10 per unit. Your charting analysis shows that if the price rises to $9.15, it is likely to continue to rise beyond that due to momentum in the security. You could set a Rising Buy Trigger at $9.15 along with a Rising Buy Limit Order at $9.19.

In this example, if XYZ Ltd reaches a price of $9.15 or higher in the market, your limit order will be submitted to the market* to buy XYZ Ltd at no more than $9.19 per unit. Your order will be fulfilled if there are sufficient sellers in the market willing to sell at a price of $9.19 or lower.

Falling Buy

A Falling Buy may help you invest in a company when its share price falls. A Falling Buy order may help you to buy a security when the unit price falls to or below the price you have set as a trigger. You also set a limit price above the trigger price, setting the maximum price you are willing to pay for the security.

Example

For example, you have been watching the price of XYZ Ltd, which has been trading at $3.10 and appears to be declining. You could set a Falling Buy Trigger with a trigger price of $2.80 and a limit price of $2.85.

In this example, if XYZ Ltd trades at $2.80 or lower, your limit order will be submitted to the market* to buy XYZ Ltd at no more than $2.85 per unit. Your order will be fulfilled if there are sufficient sellers in the market willing to sell at a price of $2.85 or lower.

Trailing Buy

A Trailing Buy may help you maximise value when investing in a company. It may help you to buy a security when the unit price falls to or beyond a level you have set as your client’s trail start price and then experiences a rise equal to or greater than the trail stop value you have set. If the security price does continue to fall, your Trailing Buy monitors for new lows and will not trigger until a rise of at least the trail stop value from the lowest price since trailing started.

Example

For example, you have been watching the price of XYZ Ltd, which has been trading at $3.10 per unit and appears to be declining. You could create a Trailing Buy Trigger with a trail start price of $2.90 and trail stop value of $0.10.

In this example, the market price of XYZ Ltd falls to $2.90, and then experiences a rise of $0.05 to $2.95 before falling again. Because the trail stop was set at $0.10, the order did not fire. XYZ Ltd then falls to a low of $1.90 before rising by $0.10 to $2.00 which meant the market order fired at $2.00.

Trailing Sell

A Trailing Sell may help with maximising a profit when a security price is rising. It may help you to sell some or all of your clients’ holdings in a company when the security price rises to, or beyond a level you have set as the trail start price and then experiences a fall equal to, or greater than the trail stop value you have set. If the security price does continue to rise, your trailing sell monitors for new highs and will not trigger until a fall of at least the trail stop value from the highest price since trailing started.

Example

For example, you have been watching the price of XYZ Ltd, which has been trading at $4.00 per unit and appears to be rising. You could create a Trailing Sell Trigger with a trail start price of $4.20 and trail stop value of $0.10.

In this example, the market price of XYZ Ltd reaches $4.20, and then experiences a fall of $0.05 to $4.15 before rising again. Because the trail stop was set at $0.10, the order did not fire. XYZ Ltd then reached a high of $5.20 before falling $0.10 to $5.10 which meant the market order fired at $5.10.

The key to successful investing is to decide on a strategy to reach your goals and then stick to it. Conditional Trading can help you keep your strategy locked in, even when your eye is off the market.

You select the share you want to watch, then set a trigger condition and order details. Our system monitors the market for you and when the share price rises or falls and your trigger conditions are met, the system submits a limit or market order on your behalf.

Example - Rising Sell

The Strategy

Declan bought 1,000 shares in ABC Ltd for $3.01 per share. His strategy was to sell when he could achieve a 20% capital gain.

The Process

Declan created a Rising Sell trigger with a trigger price of $3.65 and a limit price of $3.60. When the share price rose to $3.65, a sell order was automatically submitted for him, with a limit price of $3.60.

The Result

Declan's shares sold almost at the top of the market, at $3.63, giving him a gain of $0.62, or 21%, per share.

Example - Trailing Sell

The Strategy

Declan bought 1,000 shares in ABC Ltd for $3.01 per share. His strategy was to sell when he could achieve a 20% or more capital gain.

The Process

Declan created a Trailing Sell trigger with a trigger start price of $3.65 and a trail value of $0.10. When the share price rose to $3.65, trailing commenced.

The share price then experienced many fluctuations without falling by more than$0.10 until it reached $4.20 and then dropped to $4.09. At this point, an automated market sell order was submitted on his behalf with no limit price.

The result

Declan's shares sold almost at the top of the market at $4.07. The result was a gain of $1.06 per share - a capital gain of over 35%.

In this case study Declan was approximately 15% better off using a Trailing Sell instead of a Rising Sell however, the fired order was a market order and has a higher level of risk. Please consider a non-trailing conditional order if you would like the security of a limit price.

Your client may elect to transfer all or part of their existing Broker Sponsored holdings from another broker by completing the CHESS Sponsorship and Broker to Broker Transfer Form.

Note: To avoid any delay in processing your client’s request, please tick the box authorising us to amend minor changes to the client’s Holder Identification Number (HIN) registration details in the event that there is a mismatch of registration details on Section 2 of the form (refer screen image below).

The completed form and a copy of the most recent Broker Sponsored Holding statement/s can be sent by:

Email (preferred): advisertrading@cba.com.au

Fax: 1300 668 788

Post:
CommSec Adviser Services
Locked Bag 3005
Australia Square NSW 1215

Your request will be completed within approximately 48 to 72 hours of receipt.

Your client can transfer shares held by a different party or entity to their share trading account by completing either a:

• Standard Transfer Form for Off-Market Transactions or
• Bulk Standard Transfer Form for Internal Off-Market Transactions

(If transferring ownership of multiple stocks from one entity to another within the Ausiex Participant ID).

Please note the original signed form is required. Please send to:

CommSec Adviser Services
Locked Bag 3005
Australia Square NSW 1215

Your request will be completed within approximately 48 to 72 hours of receipt.

Please see page two of the Standard Transfer Form for Off-Market Transactions for step-by-step guidelines on how to complete the form.

• All ASX-listed securities
• All warrants listed on the ASX (additional forms required to trade warrants and partially paid securities)
• Exchange Trade Funds (ETFs)
• Exchange Traded Commodities (ETCs)
• Exchange Traded Options (ETOs - where an options account has been established)
• Listed company-issued options
• Listed unit trusts
• Listed convertible notes
• Renounceable rights
• Listed fixed interest securities
• Australian Government Bonds

All ASX-listed securities are tradeable through Chi-X Australia market.

Once your client's trading account has been set up, there are several ways to place trades:

Online

We've made placing a share trade quick and easy by giving you the ability to place a trade in a number of different ways:

• From the Quotes page, once you've located your desired security,
  click Buy or Sell.
• From your Watchlist or Portfolio click on a stock to be taken to the Quotes Page.
  From there you can choose to Buy or Sell as described above.
• On the main menu, navigate to Trading > Share Orders > Place Order.

To place an order you will first need to select a client. If you have not selected a client you will be redirected to the My Clients > Find Client Screen to select one. Once you have selected a client, to place an order from the Share Orders > Place Order page simply complete all fields marked with a red asterisk and follow the prompts. You can learn more about what information is required in each of the fields by hovering your mouse cursor over the question marks to the left of each field.

Yes, we have Brokerage Bundles available for your clients who link their trading account to one or more of their existing or new Accelerator Cash Accounts, Investment Loans or Portfolio Services accounts. For more details, please see our Bundled Pricing offering.

• An email from the adviser to notify about the change of trustees
• A Share Trading Application to be completed by the new trustee
• A Deed of Variation or completed IFSA form to confirm the new trustees
• Completed OMT is required to transfer the stock from the old to the new account
• Confirmation via email from the adviser to close the old account once the stock has been transferred

Australian Securities Exchange

Shares, Bonds, Hybrid Securities, Exchange-traded products, Managed Funds, Warrants and Structure Products

The Australian Securities Exchange (ASX) opening takes place at 10:00am (AEST) and lasts for about 10 minutes. Securities open in five groups, according to the starting letter of their ASX code, but reserve the right to vary these times:

• A-B 10:00:00am +/- 15 secs
• C-F 10:02:15am +/- 15 secs
• G-M 10:04:30am +/- 15 secs
• N-R 10:06:45am +/- 15 secs
• S-Z 10:09:00am +/- 15 secs

The market is placed in a pre-closing phase between at 4:00pm and 4:10pm (AEST). Trading stops and brokers enter, change and cancel orders in preparation for the market closing.

The Closing Single Price Auction takes place at a random time between 4:10pm and 4:12pm (AEST). ASX calculates closing prices during this phase.

Exchange Traded Options and Index Options

Market trading hours for both exchange traded options and index options are from 10am to 4:20pm (AEST).

Chi-X Australia

Chi-X Australia market continuous trading occurs from 10:00 – 4:12pm (AEST) where:

• Participants may enter orders into the Chi-X market
• Orders are matched in accordance with the rules
• Trade reports may be lodged in accordance with the Market Integrity Rules

The Chi-X Australia market opening at 10:00am is a standing start for all Chi-X quoted securities. This means some securities will be available for trading on Chi-X before they are open for trading on ASX.

Please note that unlike the ASX, Chi-X Australia does not operate an opening and closing auction.

Yes. You can place single stock, multi-client orders and multi-stock, single client orders through our trading platform.

Placing a single stock or multi-client order

There are two ways to access the 'Single Stock, Multi-Client' order pad:

1. From the My Clients > Find Client page; and
2. By clicking on Trading in the top menu and selecting Single Stock, Multi-Client

When starting from the My Clients > Find Client page, tick the boxes to the left of each client record to select the clients you wish to place a trade for and click Place Multi-Client Order.

Step 1. Set Up

Complete the order details in first section of the page as you would for a single order and select Apply Instructions to apply them to each client.

Amend the order details for individual client if required and click Proceed to review before placing order.

Step 2. Review

Review your Buy or Sell order then confirm your approval by entering your trading password and clicking Submit.

Step 3. Confirmation

You will now receive a confirmation of your order.

For more information please see our Multi Line Order Functionality online demo video.

Yes, we have a One Off Trade service available to you when you wish to sell issuer sponsored shares on behalf of your clients. To use this service your clients must either be an existing CommSec Adviser Services, CommSec or Commonwealth Bank customer. Please refer to the table below for more information on eligibility requirements.

If your clients do not meet the criteria of an existing customer, a CommSec Adviser Services trading account will need to be established in the same name as the shares before the holdings can be sold. The easiest way to setup a new trading account for your client is to complete the online application form. Alternatively, you can complete a paper application form. Please allow time for postage, application processing and any requests for additional information (if applicable)