Share Dealing Discussion Area

prudryden

Don't forget. A stop order doesn't guarantee that you will get your limit price. E.Q. You have a Good to Cancelled stop loss order at £5. The stock market closes - bad news come out overnight. The stock opens the next morning at £4. Your order becomes a market order at the open and is then executed at the best price which is a full £ below your price. And its odds on that the stock then bounces back to a higher price, but you are already out of the stock.

sabretoothtigger

I got the impression halifax wont sell if its gone 10% past the stop loss which is my preference.

They said it would only trip on the stop loss price and if it passes before a trade cleared they would wait for the price to come around again, not very clear though

prudryden

sabretoothtigger wrote: »

I got the impression halifax wont sell if its gone 10% past the stop loss which is my preference.

They said it would only trip on the stop loss price and if it passes before a trade cleared they would wait for the price to come around again, not very clear though

That would open them up to a law suit if they didnt execute the trade at the first opportunity. What would they say if they didnt sell at £4 waiting for it to go up and then it kept falling to £3 and then they sold. It would also probably be a breach of regulations of the Stock Exchange.

tradetime

sabretoothtigger wrote: »

I got the impression halifax wont sell if its gone 10% past the stop loss which is my preference.

They said it would only trip on the stop loss price and if it passes before a trade cleared they would wait for the price to come around again, not very clear though

Not sure about the 10% bit, but the second part describes a stop limit order, this type of order has two price components the stop or activation price and the limit order price. They are usually used for entering positions, not much use as a protective stop, as if price gaps over the limit they won't sell as the limit is an instruction to sell "at" or "better"

sabretoothtigger

turbobob wrote: »

Thanks both. I ended up buying AGCP.L which the system accepted (its the same thing but priced in sterling). Seems TDW's system does not like anything priced in dollars as I had the same error message come up with CRUD.L (ETFS Crude Oil fund priced in $).

AGAP.L was tipped today as a cheap commodity (vs the industrial metals, etc)

Whats the counter party risk on these etf, I searched this forum and this etf is linked to AIG & was previously suspended

Its only ETN which disappear with the issuing company right?


http://www.telegraph.co.uk/finance/markets/questor/5423184/Agriculture-index-is-food-for-thought-as-population-grows.html

the prospect of more quantitative easing in the US, which means there are concerns for the long-term health of the dollar. Commodities act as a hedge against a falling dollar.

The US Department of Agriculture's May Outlook report predicted that US corn inventories would fall to 15-year lows in the next 12 months. It also said that soybean stocks could fall to levels equal to just two weeks of consumption.
Questor advises playing the long-term trend in food prices by investing in an exchange-traded commodity that tracks an agriculture index. Questor advises buying ETF Securities Agriculture, which trades on the London stock exchange under the code AGAP.

Exchange-traded commodities are securities and not funds. They trade on stock exchanges in the normal manner, but track an index. They do not track futures contracts. This investment is also priced in sterling.

There is no stamp duty to pay but there are no dividends paid out either. The ETC has a 0.49pc annual management fee. Questor believes in the long-term fundamental case for rising food prices and so rates AGAP as a buy.

http://www.etfsecurities.com/en/news/etfs_news_080922.asp

tradetime

sabretoothtigger wrote: »

AGAP.L was tipped today as a cheap commodity (vs the industrial metals, etc)

Whats the counter party risk on these etf, I searched this forum and this etf is linked to AIG & was previously suspended

Its only ETN which disappear with the issuing company right?


http://www.telegraph.co.uk/finance/markets/questor/5423184/Agriculture-index-is-food-for-thought-as-population-grows.html

http://www.etfsecurities.com/en/news/etfs_news_080922.asp

Well AIG is pretty much owned by the US government so Uncle Sam is underwriting those I think I'll let you judge for yourself how safe that is I must confess I am not sure how the ETF securities commodity products are constructed, ETN's do carry quite a bit more risk than ETF's as regards counterparty credit worthiness etc.

turbobob

There is a document regarding counterparty risk on the ETC's here : http://www.etfsecurities.com/en/updates/document_pdfs/CSL-Counterparty_Risk_Factsheet.pdf

They say that effectively they have removed the counterparty risk.

lallylurcher28

Dear All,

I am new to this- both posting forum questions and playing the shares game.
I've read Martin's article- Thanks, very useful as usual. But I just cant work out the cheapest way for me to buy /sell shares.
I'm guessing it is the Hoodless Brennan company he mentions but just wanted to check with someone first.

I plan to start investing about £500 per month on shares. I intend to try & go for single purchases of shares each month to try & reduce buy & sell fees but build a reasonable portfolio quite quickly- ie 12 companies per year.
Is this the best company to use for me?

My second question is regarding safety. In light of the recent banking catastrophies & people losin g the money they believed was safely invested- If this company was to fold- do I lose all the money I invested with them in shares or are the shares still legally mine. What protection would there be of my investment.

Thanks everyone for your help- much appreciated.

lastoption

Hi, there are different companies and they all have different costs associated (from 10£ to any other amount) all platforms are mainly the same, Halifax, Barclays, Lloyds and so on.

With regards to the question if a company is to fold you as a shareholder will keep the shares, however these will be value less (indeed you will lose your money).... as it has happened for instance to the woolies shareholders (you as a shareholder are the first to benefit from the sp going up and will be the first to lose the money). If the assets are sold and then all debts, creditors etc are paid and if (big if) there is anything left over after everyone else has bee paid the share holders will get a proportion of what is left (in the case of woolies that was a big fat zero)... Spread your investment around different sectors in order to cover yourself. At the moment in the stock market there are loads of opportunities (but be very very careful you could end up losing the lot! if things do not turn your way and you sell at a loss.......).... Investing is not a game and as such it requires loads of research!

sabretoothtigger

I plan to start investing about £500 per month on shares. I intend to try & go for single purchases of shares each month to try & reduce buy & sell fees but build a reasonable portfolio quite quickly- ie 12 companies per year.
Is this the best company to use for me?

martin wrote:

Halifax Sharebuilder* scheme is set up for those who want to buy small amounts of shares each month, rather than in lump sums. The shares are only bought on a fixed day each month, so unlike others it's not real time dealing.
You only pay £1.50 to buy the shares regardless of amount, and there's no management fee. Yet sales are real time, so the price is £5 for amounts under £250 and £11.95 for larger trades.
Overall this means if you buy small amounts each month, and sell in one go it's a winner. However invest a lump sum in shares worth over £250, as the total transaction cost is £13.45, you're better off sticking with Hoodless Brennan and the real time dealing.

I would suggest deciding on the 12 companies you want to invest and maybe invest 1/12th of your desired amount each month with the above account

Or start with 3 and vary what goes where each month. What tends to happen on the market is sectors come into favour, like we know this has happened with banks and also mining then theres utilities to consider and so on.

Some of these are still worth buying now for the (apparent) yield alone and some would be risky after their rises