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DIY TUTORIAL – ORDER PLACEMENT - SELL
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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 - SELL
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 fields in this screen can be found below.
When you have completed each field, click "Go".
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Exchange
The 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.
Face Value
This represents the nominal value of the [Fixed Interest] security you ish to purchase: i.e. $100,000
Price Limit
When placing an order, this is the minimum price for which you are willing to sell. Direct broking will accept
the best price available if it is greater than or equal to your specified Price Limit
Yield Limit
When placing an order for a Fixed Interest security that is traded on yield, this is the highest yield you are
willing to accept if selling. Direct Broking will accept the best (lowest) yield available if it is below or
equal to your specified Yield Limit.
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 opional "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 before using them -
call FREE.0800 805 777
Expiration
This is the maximum duration of the order. Direct Broking will hold this order on it's books at longest until the
order has expired as specified by you.
NZX maximum = 4 weeks
ASX maximum = 3 weeks
If you place your order online you can receive email notifications when your NZX or ASX order expires.
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- STEP 2 -
How will you be paid?
The Settlement facility enables you to choose ASX sell orders to be paid out in Australian or New Zealand dollars.
ASX buy orders may only be settled in Australian dollars if you have a AU$ Macquarie Bank Call Account.
All NZX orders must be settled in New Zealand dollars.
To clarify your settlement options (AU$ or NZ$) please call FREE.0800 805 777
Do you have your FIN/Shareholder number/CSN?
When selling shares on a market provided by NZX, you must enter both a valid FIN and Common Shareholder Number (CSN)
which corresponds to a holding in your name and with at least as many shares on the holding as you are wishing to sell.
Direct Broking will not be able to process your order if the shares have been registered and no Shareholder/CSN and FIN are entered.
If you own shares that are not registered to your 9 digit CSN that starts with "33", please contact our Dealers on 0800 805 777.
If you have lost your FIN or CSN please call one of the two New Zealand share registries:
Computershare - 09 488 8700
Link Market Services - 09 375 5999 or 03 308 8887
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- STEP 3 -
CONFIRM NEW ORDER - SELL
This page provides you with the opportunity to verify that the order to be placed is correct.
SELLING: Brokerage is deducted from the Order Value to give the Settlement Value.
BUYING: Brokerage is added to the Order Value to give the Settlement Value.
Run through this mental checklist before you click "Confirm".
| 1. |
Have you entered the correct price format? |
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e.g. 375 = correct, 3.75 = incorrect.
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| 2. |
Have you entered your FIN and CSN? |
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If your shares are not registered to the CSN please contact us ASAP.
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| 3. |
How will you be paid for the order?? |
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NZ$ for NZX or ASX shares, AU$ for ASX shares with a Macquarie account only.
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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 4 -
ORDER CONFIRMED - SELL
This page provides you with final confirmation that the 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?!
Sometimes your shares will not be sold all at the same time - it may take a few hours, days or weeks
before the entire parcel is sold. 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 occurance!
The thing you need to remember is that the brokerage is charged on the order as a WHOLE and is not
recharged on each part that trades.
Please refer to the information below for an explanation.
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Hypothetical scenario:
SELL 1,000 TEL @ $3.75
| No call account, brokerage |
= $29.90 + 0.4% of $3,750 |
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= $29.90 + $15 |
| TOTAL |
= $44.90
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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 @ $3.75 = $1,875
Brokerage: $29.90 + 0.4% of $1,875 = $29.90 + $7.50
500 shares remain in the market |
| DAY THREE: |
100 shares traded @ $3.75 = $375
Brokerage: 0.4% of $375 = $1.50
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 @ $3.75 = $1,500
Brokerage: 0.4% of $1,500 = $6.00
0 shares remain in the market |
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Order filled over 5 days
1,000 TEL sold
Brokerage = $44.90 ($29.90 + $7.50 + $1.50 + $6.00) |
As you can see, the parcel for sale has traded 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 sold) 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 sold securities in, the quantity you sold,
the price per share, the brokerage charge and the total amount you will be paid.
Payment will be made within 3 days of the trade being completed, by way of
cheque or direct credit.
Congratulations and enjoy spending or re-investing the money youve made!
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