Investment Trusts - availability

wmb194

AsifM068 said:

Morning Forum

Are investment trust stocks limited to purchase?

The reason I ask, is that I attempted to purchase £1000 of City of London IT via my practice Trading 212 account but was only limited to around £700.00; this is a concern as I would be looking to purchase around £100,000 of City of London IT from Trading 212 following an ISA transfer in the future. Is this something that I need to raise with 212 or are investment trust stocks limited to purchase in general?

Any advice would be much appreciated. 

1. It's a practice account i.e. a simulation so who knows how it's been programmed.

2. CTY has a £1.9bn market cap so building a £100k holding in a trade or three wouldn't *usually* be a problem. The LSE data I see states its normal market size to be 5,000 shares per trade but you can usually exceed this number if the market isn't stressed.

3. T212 and most other stockbrokers have maximum order sizes and in CTY T212's is 7,149 shares and $36,000, c.£30k, with a maximum holding for new positions of 35,347 shres and $178,000, c.£151k, so you'll need to build your £100k position using at least four orders.

 https://helpcentre.trading212.com/hc/en-us/articles/6197471571101-Updating-maximum-order-and-position-sizes-Invest-ISA-

First numbers column = max quantity of shares per order, second = maximum shares holding, third = Max order size in $ value, fourth = Max position size in $ value

AsifM068

Thank you for this - back to investing school for me!

AsifM068

wmb194 said:

AsifM068 said:

Morning Forum

Are investment trust stocks limited to purchase?

The reason I ask, is that I attempted to purchase £1000 of City of London IT via my practice Trading 212 account but was only limited to around £700.00; this is a concern as I would be looking to purchase around £100,000 of City of London IT from Trading 212 following an ISA transfer in the future. Is this something that I need to raise with 212 or are investment trust stocks limited to purchase in general?

Any advice would be much appreciated. 

1. It's a practice account i.e. a simulation so who knows how it's been programmed.

2. CTY has a £1.9bn market cap so building a £100k holding in a trade or three wouldn't *usually* be a problem. The LSE data I see states its normal market size to be 5,000 shares per trade but you can usually exceed this number if the market isn't stressed.

3. T212 and most other stockbrokers have maximum order sizes and in CTY T212's is 7,149 shares and $36,000, c.£30k, with a maximum holding for new positions of 35,347 shres and $178,000, c.£151k, so you'll need to build your £100k position using at least four orders.

 https://helpcentre.trading212.com/hc/en-us/articles/6197471571101-Updating-maximum-order-and-position-sizes-Invest-ISA-

First numbers column = max quantity of shares per order, second = maximum shares holding, third = Max order size in $ value, fourth = Max position size in $ value

What is the difference between order size and position size please? 

masonic

AsifM068 said:

What is the difference between order size and position size please? 

Order size is the amount you can buy or sell at one time, while position size is the amount you can hold.

AsifM068

masonic said:

AsifM068 said:

What is the difference between order size and position size please? 

Order size is the amount you can buy or sell at one time, while position size is the amount you can hold.

Thank you sir.

k12479

wmb194 said:

...second = maximum shares holding...fourth = Max position size in $ value...

How come these exist? They're not exactly set at levels where someone's going to inadvertently find themselves having to make a mandatory bid for the business, unless that would apply to the nominee?

george4064

AsifM068 said:

george4064 said:

Not sure what a 'practice' Trading212 account actually is, but sometimes first thing in the morning (8 to 9am-ish) when the market opens there isn't much liquidity. If you try later in the day there's usually more liquidity as market makers put up more shares (or willing to buy from sellers).

Many thanks for this. A 'practice' account is a dummy account with fake cash that 212 provide for newbies like me I guess to 'practice' investing.

Thanks, so if you were unable to buy £1,000 of the IT using fake money in a practice dummy account it’s just an issue with T212 and nothing to do with liquidity and the actual market.

Not sure what your understanding is of placing trades on a dummy/fantasy account would actually entail, but it wouldn’t be affected by electronic market sizes, liquidity etc..

Edit: jimjames best me to it

wmb194

k12479 said:

wmb194 said:

...second = maximum shares holding...fourth = Max position size in $ value...

How come these exist? They're not exactly set at levels where someone's going to inadvertently find themselves having to make a mandatory bid for the business, unless that would apply to the nominee?

Good question; because T212 is a dreadful stockbroker*? If you look through the long list in the link some equities are set at insanely low levels, literally just a few hundred pounds. I currently only hold a small quantity of preference shares with T212 and cannot buy any more.

Edit: Having given it some thought, these restrictions could be to do with T212 trying to make its internal market as liquid as possible and avoid having to go out to exchanges to fill orders as much as it can. If you don't know, T212 is unusual in that it tries to match your orders with its other customers before going out to exchanges.

*I keep trying to tell people but they won't believe me.