DIY TUTORIAL – ORDER PLACEMENT - BUY
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These pages are used to place orders to BUY or SELL securities with Direct
Broking Limited.
A separate page is provided for BUY and SELL placement.
When you have signed on to our website, click on the link highlighted in blue
below:
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- STEP 1 -
ORDER DETAILS - BUY
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Which payment scenario applies to you?
| 1. |
This is my very first order and I do not have a Direct Broking
Call Account |
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You need to pre-pay if your very first order exceeds $10,000.
If this order does not exceed $10,000 then you do not need to pre pay. |
| 2. |
This is my very first order and I have a Direct Broking Call
Account but there is no money held in it |
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You need to pre-pay if your very first order exceeds $10,000. If this order
does not exceed $10,000 you do not need to pre pay. |
| 3. |
This is my very first order and I have a Direct Broking Call
Account with enough money held in it to cover the cost of my order |
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You do not need to do anything because we will automatically take the money
from your Direct Broking Call Account. |
| 4. |
This is not my first order and I do not have a Direct Broking
Call Account |
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You need to pre-pay for this order if it exceeds $40,000. If this order does
not exceed $40,000 you do not need to pre pay. |
| 5. |
This is not my first order and I have a Direct Broking Call
Account but there is no money in it |
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You need to pre-pay for this order if it exceeds $40,000. If this order does
not exceed $40,000 you do not need to pre pay. |
| 6. |
This is not my first order and I have a Direct Broking Call
Account with enough money in it to cover the cost of my order |
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You do not need to do anything because we will automatically take the money
from your Direct Broking Call Account. |
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- STEP 2 -
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Now you can enter the quantity, price limit and expiration date in this screen.
If you need to check the prices again and refresh your memory, click on the red
“Quote” button, circled in blue.
Definitions for the fields on this screen can be found below.
When you have completed each field, click “Go”.
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Exchange
Market place where securities are quoted and traded - New Zealand Stock
Exchange (NZX) or Australian Stock Exchange (ASX).
Security Code
Stock Exchange generated listed security identification code, typically made up
of 3 letters.
Price Limit
When placing an order, this is the price you are not willing to pay more than
if buying or receive less than if selling.
Direct Broking will accept the best price available if it is within or equal to
your specified Price Limit.
The price limit is represented in cents and must be entered in cents when you
place an order.
Yield Limit
When placing an order for a Fixed Interest security that is traded on yield,
this is the lowest yield you are willing to accept if buying or the highest
yield you are selling.
Direct Broking will accept the best yield available if it is within or equal
to, your specified Yield Limit.
The yield limit is represented as a percentage and must be
entered as a percent when you place an order.
At Market
When placing an order At Market, Direct Trade automatically sets a Limit of the
current ASK price (for BUY orders) or the current BID price (for SELL orders).
In the case of a highly traded stock
during market hours, an At Market order will usually trade
immediately, however; in the case of a stock with low
liquidity or which trades infrequently, the outstanding
balance of the order may remain untraded indefinately. In
this situation clients need to modify the order to ensure it trades.
Direct Broking
recommends you always enter a limit Price (or Yield for Fixed
Interest instruments).
Trigger When
The optional “trigger when” facility enables you to place an order IF and WHEN
the trigger condition is met.
If this field is left blank then the order will be taken immediately subject
only to the specified price limit.
This facility is not available for Fixed Interest Securities.
We advise all clients to speak with our Dealers to clarify the use and purpose
of “trigger” orders – call FREE.0800 805 777
Expiration
This is the maximum duration of the order. Direct Broking will hold this order
on its books at longest until the order has expired as specified by you.
NZX maximum = 4 weeks
ASX maximum = 3 weeks
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- STEP 3 -
Which currency will you pay us in?
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Only ASX buy orders can be settled in Australian and New Zealand dollars if you
have an AU$ Macquarie Bank Call Account.
If you have a Macquarie bank account you’ll be able to select AU$ or NZ$
settlement, if you do not have a Macquarie Bank account you will not be able to
select any currency other than NZ$.
All NZX orders must be settled in New Zealand dollars.
To clarify settlement options (AU$ or NZ$) please call FREE.0800 338 637
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| Are you buying enough securities? |
Minimum Holdings at any time shall, unless otherwise determined by NZX, be as
follows:
| Number of Units |
Price (both figures inclusive) |
| 2,000 |
Where the price does not exceed 25 cents |
| 1,000 |
Where the price exceeds 25 cents but does not exceed 50 cents |
| 500 |
Where the price exceeds 50 cents but does not exceed $1.00 |
| 200 |
Where the price exceeds $1.00 but does not exceed $2.00 |
| 100 |
Where the price exceeds $2.00 but does not exceed $5.00 |
| 50 |
Where the price exceeds $5.00 but does not exceed $10.00 |
| 25 |
Where the price exceeds $10.00 |
Where the minimum holding requirement is met at the time of order submission
but, due to a price variation or corporate action, is no longer met on
settlement; the security holding will not be registrable.
Where this occurs Direct Broking Limited will contact you. At this point you
will have two options:
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Purchase the additional shares to raise the parcel above the minimum holding
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Reverse the transaction
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- STEP 4 -
CONFIRM NEW ORDER - BUY
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This page provides you with the opportunity to verify that the order to be
placed is correct.
BUYING: Brokerage is added to the Order Value to give the Settlement
Value
SELLING: Brokerage is deducted from the Order Value to give the
Settlement Value.
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Run through this mental checklist before you click “Confirm”
| 1. |
Have you entered the price in cents, not dollars? |
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379 = correct
3.79 = incorrect
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| 2. |
Have you entered your desired quantity, and does it meet minimum holding
requirements? |
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At $3.79 per share you need to purchase at least 100 shares.
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| 3. |
Have you got enough money to pay for the order? |
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Do you need to pre-pay, is there enough in your Call Account?
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| 4. |
Is the brokerage charge representative of your account set up? |
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Direct Broking Call Account holders receive a discounted rate (conditions
apply)
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If the order is correct then click the “Confirm” button which will forward it
to our Dealers.
If the order is incorrect then click the “Change” button.
If you no longer wish to place the order then click the “Abandon” button – this
will remove the order from our system.
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- STEP 5 -
ORDER CONFIRMED - BUY
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This page provides you with final confirmation that your order has been placed
successfully with our Dealers.
You can monitor the progress and change or cancel the order from the “My
Orders” menu.
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SO WHAT HAPPENS NEXT?!
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Sometimes your shares will not be purchased all at the same time - it may take
a few hours, days or weeks before your entire parcel is bought.
This is why it is important that you keep an eye on the progress of your order,
especially as it draws nearer to the expiration date.
In the hypothetical situation below a share parcel trades over a 5 day period
in various quantities – rest assured that this is a common occurrence!
The thing you need to remember is that the brokerage is charged on the order as
a WHOLE and is not re-charged on each part that trades.
Please refer to the information below for an explanation.
Hypothetical scenario:
BUY 1,000 TEL @ $3.79
| No call account, brokerage |
= $29.90 + 0.4% of $3,790 |
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= $29.90 + $15.16 |
| TOTAL |
= $45.06
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Trading and brokerage breakdown:
| DAY ONE: |
No shares traded
No brokerage charged
1000 shares remain in the market |
| DAY TWO: |
500 shares traded @ $3.79 = $1,895
Brokerage: $29.90 + 0.4% of $1,895 = $29.90 + $7.58
500 shares remain in the market |
| DAY THREE: |
100 shares traded @ $3.79 = $379
Brokerage: 0.4% of $379 = $1.516
400 shares remain in the market |
| DAY FOUR: |
0 shares traded
No brokerage charged
400 shares remain in the market |
| DAY FIVE: |
400 shares traded @ $3.79 = $1,516
Brokerage: 0.4% of $1,516 = $6.064
0 shares remain in the market |
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Order filled over 5 days
1,000 TEL purchased
Brokerage = $45.06 ($29.90 + $7.58 $1.516 + $6.064) |
As you can see, the shares have been purchased has in 3 parts.
The first part of the order is charged the minimum of $29.90 in brokerage (the
minimum is charged only once) and then 0.4% of the value of this first part is
added to the minimum cost.
From here, the additional parts are charged at 0.4% EACH until the order is
fully completed.
Basically, if 1,000 shares traded at the same time the brokerage would be
exactly the same as if those shares had traded in 3 separate parcels on
different days.
If you would like further clarification or explanation, please call our Dealers
FREE.0800 805 777
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...AND AFTER THAT?
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When your order has been filled (all shares have been purchased) Direct Broking
will send a contract note to you via email or post.
The contract note is for your own records and acts as physical confirmation
that the order you placed with us has been successful.
It will outline the company you bought securities in, the quantity you bought,
the price per share, the brokerage charge and the total amount you need to pay.
Please make payment within 3 days after the trade has been completed, by way of
cheque or direct credit.
A few days later you will receive paper work from one of the two New Zealand
share registries, Computershare or Link Market Services.
The share registry will send you a “statement of holding” that confirms your
ownership of the shares.
Congratulations and welcome to the world of share investment!
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