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 Q&A, General question on stock market

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gsutharison
post May 31 2010, 07:53 PM

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Hi Guys,
I have opened an account in M2U Online Stock Trading. Attached is the screen of my interface. Can anyone able to teach me what to see 1st in the interface before buying and selling a stock? I really can't understand all the numbers over there. Some said we can't simply buy cause we can only buy the amount of stock others are selling. Even if you want buy, we must wait till someone sell their stock is it?
Just teach me the simplest way, and I will learn from there. I just need to know how the flow works.

I'll be most grateful if any of you could teach me a simple calculation in buying/selling stock from the interface that I have attached..



P.S. Many thanks to Kmarc


Attached Image
gsutharison
post Jun 1 2010, 05:00 PM

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QUOTE(kmarc @ May 31 2010, 11:40 PM)
From your screen, you have to know a few terms. Take for example the stock "Axiata".

B-Q = Buy Queue = 10934 lots
--- this means that people are queuing to buy (a total of 10934 lots)
--- At what price? At RM3.76 (see "Buy" column)
--- If you put in an order to buy at RM3.76, say 25 lots, then the total B-Q = 10934 + 25 = 10959

S-Q = Sell Queue = 433 lots
--- this means that people are queuing to sell
--- At what price? At RM3.77 (see "Sell" column)

Can you buy "Axiata" stocks immediate at that time? Yes, instead of waiting to queue to buy at RM3.76, you can buy straight away at RM3.77 as people have queued to sell at that price.
- say you put in an order to buy 30 lots at RM3.77
- the transaction will go through as there are people waiting to sell at that price
- Once the transaction is done, the S-Q = 433 - 30 = 403 lots left waiting to be sold

You can see the queue in more detail by double clicking on "Axiata" and then select this icon to see more:

[attachmentid=1603450]

Note : 1 lot = 100 shares
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Hi Kmarc,
Thanks for your reply.

Using the examples above;
1. People are selling Axiata for RM3.77. And I want to buy for the price RM3.76. So when someone sells their stock for RM3.76, the first guy who request for RM3.76 will successful in the bid is it?

2. Let's say I wanna sell my stock of Axiata of 50 lots. So the S-Q = 433+50=483. Am I right? So my stock will be in the S-Q till someone buys my stock right? So until someone buys it, I won't get my money is it?

3. I just tried in Online Stock Game. It's simulator. I tried buying stocks. But then the status is showing 'Unable to Detect Dealer'. What does it means? Is it how it works? Or must I contact Maybank? (Attached below are the interface)



Attached Image
gsutharison
post Jun 3 2010, 03:51 AM

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QUOTE(kmarc @ Jun 1 2010, 05:34 PM)
1) Yes, you have to wait for your queue. It is something like standing in-line to buy your shares at RM3.76. You can only buy it when you turn comes.
- alternatively, as mentioned above, if you don't want to wait to buy, you can key-in to buy at RM3.77. As there are nobody waiting in-line to buy at RM3.77, your transaction will take place almost immediately.

2) That is correct. You have to wait your turn at RM3.77.
- Another example, if one guy straight away key in RM3.77 to buy 500 lots, he will have snapped up all the 483 lots (in the S-Q column at RM3.77), leaving 17 lots left not bought in the RM3.77 B-Q column.
- If you are successful in selling your stocks, you will only get your money after T+3 (same as buying)

3) Errmm... not too sure about that as I never tried the game. wink.gif
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Hi Kmarc,
Thanks for your reply. Sorry for troubling you again.



1. In your previous answer for 'Question 2', you mentioned "you will only get your money after T+3 (same as buying)". I don't really get you on that.
Let's say my Trading Account has RM2000.00 and I want to buy stocks for RM1400.00, once I bought the stock they will deduct the amount from my account right(RM2000-RM1400=Balance RM600)? And once I sell the stock for RM1450, they will top-up my account right(RM600+RM1450=RM2050)? hmm.gif >>>I can check the debit and credit update after few minutes in my account right?
*i didn't include brokerage fee, contract stamp and clearing fees; above calculation is just for example!

or

Once i buy the stock, they will deduct the money on the 3rd working day, and when I have successfully sold the stock, they will bank-in the money on the 3rd working day is it? hmm.gif



2. I read your article about T+3 in "LYN stock market FAQs & Guide" but don't really get it. blink.gif
T+3 system works when we want to buy stocks amount 3xhigher than the money value we currently have in our account right? Let's say I have enough cash to buy the stock, T+3 won't work right? hmm.gif

or

T+3 means what ever transactions we do, they will deduct(buying) and cash-in(selling) after 3 working days is it? hmm.gif



3. (>>>If you know) How much is the BROKERAGE FEES in Maybank? From my findings from other forums, they mentioned minimum is RM 28 through online and RM40 through remeiser (or 0.700%; which ever is higher). Is it correct?icon_question.gif


Hope you can clear my doubts!

gsutharison
post Jun 7 2010, 01:08 AM

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QUOTE(kmarc @ Jun 3 2010, 01:30 PM)
Answered above in blue. wink.gif
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Hi Kmarc,
Thanks a lot for your help. Those was really helpful.
Now, I need to learn which stock to buy and sell at the right time. May be you can share if you have any tips on that.
Thanks again for your help! thumbup.gif

Regards,
Sutharison

gsutharison
post Jun 7 2010, 04:45 PM

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QUOTE(kmarc @ Jun 3 2010, 01:30 PM)
Answered above in blue. wink.gif
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Hi Kmarc,
I have a question here, hope you can answer it.

According to the attachment below, the sell value in S-Q is 0.140, so at the current moment i can only buy the stock for 0.140 only is it? I can't buy for 0.135 or 0.130 is it? Because I can see the amount in "Buy vs Sell" option too but once when I want to buy that amount, the transactions in not going through. Attached below is the Buy vs Sell value.



Attached Image



Thanks & Regards,
Sutharison

gsutharison
post Jun 7 2010, 09:51 PM

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QUOTE(kmarc @ Jun 7 2010, 05:34 PM)
Errrmmm... there's nobody queing up to sell at 0.135 or 0.130 ma.... how to buy?
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Hi Kmarc,
Aiyaa, sorry ya. I've been confused all this while. Let's say Guy A sell his stock lot of 100, Guy B is 50, Guy C is 100 and Guy D is 50.

1. If I wanna buy 200 lots, will it be
100 lots from Guy A and 100 lots from Guy C?

or

100 lots from Guy A, 50 lots from Guy B and 50 lots from Guy C?


2. According to the attachment below, in the highlighted line, under 'Vol', 600 is the lot of shares people have sell is it?

Attached Image


Thanks & Regards,
Sutharison



Added on June 7, 2010, 9:54 pm
QUOTE(smartly @ Jun 7 2010, 05:45 PM)
Can still buy 0.135 or 0.13 but will be in queue and not matched immediately.
Queue order is open until someone dispose/sell at 0.135.
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Hi Smartly,
Thanks a lot for your answer. I guess, I should always check if anyone selling for lower price.


This post has been edited by gsutharison: Jun 7 2010, 09:54 PM
gsutharison
post Jun 8 2010, 02:40 AM

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QUOTE(kmarc @ Jun 7 2010, 10:09 PM)
1) Errmm.. why are you concern from where you bought the shares from?  hmm.gif To answer your question, it is as explained earlier. You trade by Q. Assuming that A (100 lots) queue first, then B (50 lots), then C (100 lots) then D (50 lots), if you bought the shares from their Q by 200 lots, you would have bought 100 lots from A, 50 lots from B and 50 lots from C. This is done automatically and does not need any effort from your part. C would have 50 lots left to sell. If another guy comes to buy 10 lots from that Q, it would be from C's 50 lots (as C is now at the front of the Q because A and B already sold their shares), 50-10 = 40 lots left from C. Remember that we're talking about people queueing up to sell at a certain price point.

2) Haha, that's the transaction that was done. In that picture, 600 lots were sold at 0.415 at 4:50:05 pm. Red colour for sold, green colour for bought.  wink.gif
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Hi Kmarc,
That was really helpful. Thanks again bro!

Sutharison.


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