X-O trading

DoubleEntry

Hi All

I am about to open an account with X-O, but I can't find an answer to a question I have.

If I buy shares today, and there are sufficient funds in the account to cover the cost, can I then re-sell tomorrow, even though the settlement date is still two or more days away?

Thanks to antone who can advise.

Thrugelmir

Trading is instanteous when the markets are open.

DoubleEntry

Thanks Thrugelmir

Yes, I realiase that trading is instantaneous, but I don't get the settlement period.

When the trade is carried out do the shares appear immediately in my portfolio, or are they held until the settlement has completed?

Maybe I'm completely off track, but the way I read it is that the trade is completed on eg Monday, but with a three day settlement period I don't actually pay for them until Wednesday/Thursday.

If I am correct in this, can I sell the shares on Tuesday or have I got it wrong?

Cheers

Thrugelmir

Sorry if I wasn't clear. The update to the portfolio is instanteous, well within a minute or so. So it's possibly to sell and reinvest the proceeds very quickly.

DoubleEntry

Thanks again

It just doesn't seem right that I can buy and re-sell before I have paid!!

Thrugelmir

You'll need deposited funds to buy.

DoubleEntry

Yes, as per my op, the funds are in the account - but does the three day settlement period mean that they dont leave the account until the third day or am I misunderstanding?

grizzly1911

DoubleEntry wrote: »

Yes, as per my op, the funds are in the account - but does the three day settlement period mean that they dont leave the account until the third day or am I misunderstanding?

As Thrug says you must have money on the account sufficient to meet the first buy.

I have brought and sold different shares on the same day. They wouldn't pay away the balancing funds to me until the settlement day. They credit your bank account via BGC so takes another 3 working days.

If you brought on day 1, sold later or on day 2 then any balance would not be available to you until settlement day post second transaction. Once you have brought the balance on account is reduced in anticipation of settlement IIRC ( a bit like pre-authorisation on debit/credit cards).

marvin

Put simply
Yes the money goes instantly
Yes the shares appear in your portfolio instantly
Yes You can sell them within seconds if you wish
Yes you can reinvest any money returned to your account from the sale instantly
No you cannot withdraw the cash until the settlement has cleared.

I have never traded on My X-O account it is there for when I want it, my main account is with Halifax and this is how that works.

Hope this helps

DoubleEntry

Thanks for the replies folks.
Much appreciated