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What is online stock trading?
Online trading refers to the method of placing orders to buy and/or sell securities by the investor himself via the Internet as compared to the broker assisted method of placing such orders by contacting his stockbroker by telephone.
Is there a stockbrokerage firm involved or do I bypass the stockbroker completely?
All trades will involve a stockbrokerage firm even if a stockbroker does not assist with the trade. Although you may enter orders yourself, you do not have direct access to the Philippines Stock Exchange (PSE). Therefore, you must use a PSE member stockbrokerage firm for your orders to be executed.
What kind of securities can I buy or sell online?
You can buy or sell any stock that is listed on the PSE. Click HERE for a list of these stocks.
Will I be able to buy and sell all types of shares listed in the stock exchange or are there stock ownership limitations that I should know about?
You can buy and sell the shares of all companies listed in the stock exchange. There are however some shares that are classified, typically into "A" and "B" shares. "A" shares are those that can be owned only by Philippine citizens while "B" shares are those that can be owned by both Philippine and foreign nationals. For a list of companies that have foreign ownership limits, click HERE. If you are a foreigner, you can only buy the "B" shares of those companies. If you buy the "A" shares of those companies, your trade will be rejected.
What are the types of orders and what are their differences?
There are two types of orders. They are the Day Order (DO) and Good Till Cancelled (GTC) orders. 1) Day Order (DO) is an order to buy or sell shares at a specified price which will expire automatically at the end of the trading day if no execution is made. 2) Good Till Cancelled order (GTC) is an order to buy or sell shares at a specified price which remains valid/outstanding for 7 calendar days unless cancelled by the client prior to expiration.
What are the risks involved in online trading?
There are risks involved in investing in securities, no matter what method you choose to use. Before venturing into the stock market, you must understand the principles of investing, your own risk tolerance, and investment goals. When investing in stocks, you will do well to do your own research before acting on any advice or tips. For online investors in particular, one area of concern will be the security of the facility. While our facility is secured by what we believe to be the most advanced security measures currently available, it is important to point out that the security of the Online Trading Facility also rests heavily on your ability to safeguard information, especially your username and password. The use and storage of any information - your password, stock portfolio, transaction activity, account balances, orders, and any other information available on your personal computer is at your own risk and is your sole responsibility.
What are the trading hours?
You can trade from 9:00 am to 03:30 pm (GMT + 08:00), Mondays thru Fridays, except for Philippine legal holidays and days when the Bangko Sentral ng Pilipinas' (Central Bank of the Philippines) Clearing Office is closed. The trading session of the PSE follows the schedule below:
Pre-open Period ▪ No matching of Orders can occur during this period, but you can enter, modify, or cancel Orders, which will be processed based on the pre-opening algorithm.
Pre-Open No-Cancel Period ▪ You are allowed to enter Orders but cannot cancel or modify Orders during this period.
Opening Period ▪ The period when the Opening Price for all Securities is calculated. During the Opening Period, the Order book is frozen and Order entry, modification and cancellation are not allowed.
Continuous Trading ▪ A period when Orders are automatically matched at the Best Price in accordance with the Revised Trading Rules.
Pre-Close Auction Period ▪ This period is the same as the Pre-Open Auction Period. During this time, you can enter, modify or cancel Orders.
Pre-Close No-Cancel Period ▪ During this period, you are allowed to enter Orders but they cannot cancel or modify Orders.
Run-Off/Trading-At-Last ▪ You can enter Limit Orders at the Closing Price only or Market Orders but matching is executed only at the Closing Price for both Order types.
What are the advantages of online trading?
QUICK ACCESS/CONVENIENCE. You can place your orders from anywhere and at any time. All you need is a personal computer. When you trade online, you save yourself a lot of time. You need not call your stockbroker to give your orders or to find out what happened to your trade. CONTROL/TRANSPARENCY. With online trading, power is literally at your fingertips. With a few keystrokes, you can place your orders and get all the information you need without any assistance or intervention of a stockbroker. You do not have to discuss or reveal your trades or plans with your stockbroker. You become an empowered, self-directed investor. EFFICIENCY. Getting information or feedback used to take minutes, sometimes even days. With online trading, you get these faster because you get online, real-time information on your account balance, order status, and stock quotes with the best three levels of bids and offers. OPPORTUNITY TO TAKE ADVANTAGE OF MARKET MOVEMENTS. By trading online, you have the ability to react quickly and take advantage of opportunities in the market that will hopefully enhance the value of your investments.
Can I preview ABCSI's Online Trading Facility?
Yes, you can. You can learn how to trade online with ABCapitalOnline.com by going through our "Take The Tour" interactive demo. To go there now, click HERE.
How timely are the quotes?
Customers get real time quotes because our facility allows for a direct link up to the PSE. To ensure that your quotes are updated, make sure to click the update button of your quotes page.
Can I open a margin facility for my online trading account?
We do not offer margin facilities for online trading accounts at this time. All orders for the purchase of securities through the Online Trading Facility are on cash basis only. Your account must contain sufficient funds to cover the purchase amount of the securities, the broker's commission, and all the applicable transaction costs attributable to you as the buyer.
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