Share trading NZ-Can you trigger a sell?

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psychnurse

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#165943 25-Feb-2015 13:01

My question relates to online trading via ASB securities. I have no issues setting a price to buy, but is there a way to set a price to sell if a share drops to a certain price? For example F & P health care is $6.56, if I wanted
to sell at $6.50 (should it drop) Other than sitting in front of the PC there does not seem to be a way to sell falling shares.

ajobbins

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#1246361 25-Feb-2015 13:15

What you want is a put option. Not sure if you can do those on the NZX yet.

Someone would sell you the option, which is a bit like paying an insurance premium against downside risk.

There isn't really a way (without automatic trading software) to automate selling at a certain price. A put option would give you certainty. Even automated selling won't necessarily protect you if the security price is falling rapidly, but a put will.

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psychnurse

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#1246370 25-Feb-2015 13:24

Thanks for that info, didn't think was an easy way.

scheduler

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#1246381 25-Feb-2015 13:42

You would need to confirm this. I just had a look at the ASB securities online Portal. When you select the trade you have an option for "stop loss sale" I believe this option would accomplish your aim

ajobbins

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#1246394 25-Feb-2015 13:49

scheduler: You would need to confirm this. I just had a look at the ASB securities online Portal. When you select the trade you have an option for "stop loss sale" I believe this option would accomplish your aim

It might do, but as I mentioned above, if the price is falling rapidly, it wouldn't guarantee much as any trade would still need to go into the queue and be matched with a buyer. If you automatically throw a limit sell order in there at a certain price but the market has dropped below that price, your trade wont execute at all. If you go in with a market order at a certain trigger point, it may execute at a lower (maybe much lower) price than you expect.

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psychnurse

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#1246405 25-Feb-2015 14:00

scheduler: You would need to confirm this. I just had a look at the ASB securities online Portal. When you select the trade you have an option for "stop loss sale" I believe this option would accomplish your aim

Found it on the site, thanks for that. I know if they are in free fall then it wont trigger but good know that this is an option available. From your advise also found target buy. Cheers to you both.

wsnz

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#1248460 28-Feb-2015 14:16

FPH are trading at very high multiples so (i assume) like you, I'm keeping a close eye on them. So far the long term up-trend is unbroken, but it won't last forever.