How to buy and sell shares with conditional orders
Question: Can you please demonstrate how conditional orders work, and tell us why traders use them? Response: Conditional Orders enable investors to set specific conditions to either buy or sell shares at a certain price if a share reaches that price in the market. We will look at four strategies: Falling Sell, Rising Buy, Falling…
How do you tell whether a share is undervalued or overvalued?
Typically when we refer to value in the stock market we’re talking about the value of the underlying company. This is different to terms like ‘overbought’ or ‘oversold’ which we often hear in technical analysis focusing purely on price movement. Today we’ll be focussing on the fundamental value of a company. PE Ratio…
How to fill your bid at market open
Hello Matt, some time ago I asked how the End Of Day settlement process works. Thank you for that. Can you please tell me how the Pre-Market works. I see on my screen the matching bids altering up and down on the pre-open. I would like to know if my initial bid will fill at…
Why are shares quoted to 3 decimal places?
I do understand that the ASX works up to three decimal points. What I would like to know is how one Australian dollar is divided by .nn For example: Shares in a company is shown as $3.600, $3.590, $3.580. Can you please explain? Dexter Dear Dexter and readers, Shares listed on the ASX are quoted…
How can a share price rise when the market is closed?
Dear Panel, Could you please explain to my why it is when I buy shares through my broker online and they give me the price I have to pay (copy best sell price) and this transaction is when the stock exchange is closed, and the next morning when the market opens the shares have opened…
On an End of Day trade, do I end up with the final settlement price?
I have a question regarding the after market settlement period. I see the match price fluctuating up and down on my screen during this period, ending up with a final settlement price. My question is: on a End Of Day trade, do I end up with the final settlement price, or could it be traded…
What is a stop loss?
A Stop Loss is an instruction for a particular share in your portfolio to be placed for sale on the market when it trades at a pre-determined price. You decide which share you wish to sell, and set an acceptable exit price below the share’s current trading price. Imagine you own shares trading at $10.00…
Why don’t stocks begin trading at the previous day’s closing price?
Like many things in the world, the stock market relies on the power of supply and demand. The stronger the demand for a share in a company, the higher its price will be. Alternatively if less people are interested in buying a share of a particular company, its price will drop. Before the market opens…
What is the smallest and largest number of shares that you can buy?
The Australian Share Registries, which manage the registers of companies, will allow an initial minimum parcel of $500 worth of shares to be purchased. Once that original number is purchased, the investor can buy smaller parcels to add to their holding. But as every trade incurs a brokerage fee, it may make more sense to…
