Preparation for Intra Day Short Selling
Today, 27 Aug 2018) mark as first day for Cimb to introduce IDSS (same day sort sell), though Bursa already open it for other broker few months ago.
What is short selling?
Short selling means you sell something which you not yet have.
What is IDSS?
IDSS is intra day short selling, meaning you can short sell a list of stocks (provide by Bursa short sell list, currently about 280 stocks) approved by Bursa within a day and you need to close the position before market close (for Cimb, investor must close position before 3:30pm same day).
Whats happen if you fail to closed your short position within the day?
If this happen, you may need to borrow shares from the license shares lender, the confirmation must be done on 5pm. (must be done within 1 hours before 6pm). This will involve borrow cost and charges and subject to availability of stocks from your existing broker or other broker.
Another option is the Dealer will perform buy in on next market day with penalty of 10 tick above the previous day closing price.
For how long you can borrow the shares?
Trader who borrow shares from licensed lender must return the shares on T+6, of course involve charges calculate on daily basis. (more for the case if the stock suspend and buy back can not be performed on next market day)
What preparation need if want to participate in IDSS?
Investors who want to short sell need to sign SBL agreement with the broker. Different broket have different arrangement in terms of trading limits, cut off time, borrowing interest, penalty for fail trades and others. You need to make sure you understand all the charges and procesure before commit to short selling.
Restriction
Bursa will suspend the IDSS if a stock price falls by more than 15% from the previous day's closing price, or if the gross short-selling volume exceed the daily maximum limit of 3% of outstanding shares per security.
For existing customer who want to activate IDSS a/c can go to iTradeCimb.com.my or click here to down load the forms. After sign the forms, just send back to CIMB together with all the required documents.
What is short selling?
Short selling means you sell something which you not yet have.
What is IDSS?
IDSS is intra day short selling, meaning you can short sell a list of stocks (provide by Bursa short sell list, currently about 280 stocks) approved by Bursa within a day and you need to close the position before market close (for Cimb, investor must close position before 3:30pm same day).
Whats happen if you fail to closed your short position within the day?
If this happen, you may need to borrow shares from the license shares lender, the confirmation must be done on 5pm. (must be done within 1 hours before 6pm). This will involve borrow cost and charges and subject to availability of stocks from your existing broker or other broker.
Another option is the Dealer will perform buy in on next market day with penalty of 10 tick above the previous day closing price.
For how long you can borrow the shares?
Trader who borrow shares from licensed lender must return the shares on T+6, of course involve charges calculate on daily basis. (more for the case if the stock suspend and buy back can not be performed on next market day)
What preparation need if want to participate in IDSS?
Investors who want to short sell need to sign SBL agreement with the broker. Different broket have different arrangement in terms of trading limits, cut off time, borrowing interest, penalty for fail trades and others. You need to make sure you understand all the charges and procesure before commit to short selling.
Restriction
Bursa will suspend the IDSS if a stock price falls by more than 15% from the previous day's closing price, or if the gross short-selling volume exceed the daily maximum limit of 3% of outstanding shares per security.
For existing customer who want to activate IDSS a/c can go to iTradeCimb.com.my or click here to down load the forms. After sign the forms, just send back to CIMB together with all the required documents.
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