Noob questions

[Guest money]

For a share trading account:

What happens if I bid higher than the asking price - eg I accidentally put in an extra zero?

I ticked the validate bid box, which I found in chart settings (it's a global setting, apparently) but I don't think it did anything. What is it supposed to do?

What is the "last traded" plotting option in charts? I would like to see a chart of actual trade price, but according to IG staff that's not what the last traded price is.

If I bid at a price step finer than that specified by the ASX, does IG round my bid off?

Where is the evidence that I actually own the shares I buy?

Will IG send me a yearly statement for tax accounting that I can hand to my accountant to sort out?

Why can't I buy bitcoin without a leveraged account? Can I set one up without actually borrowing any money or incurring fees?

If I buy bitcoin, will IG keep track of the technical details of ownership (those codes, or whatever you receive...)?

[JamesIG]

RIGHT! Lets get some of these questions answered... Replies indented and in red.

What happens if I bid higher than the asking price - eg I accidentally put in an extra zero?

There is a requirement to pass you the best available price at the time. All that would happen is if your full size wasn't filled in that particular limit price, you would move up to the next price in the trade book and try and fill there. 

I ticked the validate bid box, which I found in chart settings (it's a global setting, apparently) but I don't think it did anything. What is it supposed to do?

Please can you provide a screenshot so I can verify what you are referring to please? 

What is the "last traded" plotting option in charts? I would like to see a chart of actual trade price, but according to IG staff that's not what the last traded price is.

On a share dealing account this should be the last traded. On a CFD or spread account it should be the last bid offer move. If you have a share dealing account you can get the L2 Dealer and look at time and sales, which gives far greater colour to the 'last traded' volumes. 

If I bid at a price step finer than that specified by the ASX, does IG round my bid off?

You should be rejected and asked to bid appropriately. 

Where is the evidence that I actually own the shares I buy?

We will provide you with a deal confirmation and statement. 

Will IG send me a yearly statement for tax accounting that I can hand to my accountant to sort out?

Tax statements are provided. 

Why can't I buy bitcoin without a leveraged account? Can I set one up without actually borrowing any money or incurring fees?

We do not offer 1 for 1 bitcoin purchases. We only offer the leveraged options via a CFD or spread bet (UK only)

If I buy bitcoin, will IG keep track of the technical details of ownership (those codes, or whatever you receive...)?

We do not offer that option. You can only trade on the contractual link in price movement of the asset. You can not withdraw or own bitcoin via our contracts. 

[Guest money]

Thanks for the detailed response James.

See screenshot attached for validate trade thing.

"On a share dealing account this should be the last traded.

 

What does "last traded" mean?

"If you have a share dealing account you can get the L2 Dealer and look at time and sales, which gives far greater colour to the 'last traded' volumes. 

How do I get one of those?

"You should be rejected and asked to bid appropriately. 

Doesn't happen. The bid is accepted. For example, I have current bids pending at $1.306 and $1.106, but the ASX only allows bids in $0.005 increments for shares valued up to $2.

[Guest money]

If there are multiple bids at the same price, how does the ASX decide which to fill first?

I have an Australian share trading account. Can you please run me through the steps to do the equivalent of purchasing AU$5000 worth of bitcoin, and the fees/costs involved?

[Caseynotes]

Quote

1 hour ago, money said:

If there are multiple bids at the same price, how does the ASX decide which to fill first?

I have an Australian share trading account. Can you please run me through the steps to do the equivalent of purchasing AU$5000 worth of bitcoin, and the fees/costs involved?

 

Hi @money

The system for filling orders is First In First Out so the earlier the order is place the earlier it is filled.

 

Bitcoin on IG is traded through a CFD so you are trading a leveraged derivatives product rather than actual bitcoin itself so the price is derived from the underlying market and the costs are the spread, funding and interest associated with CFDs, see more here;

 

https://www.ig.com/au/bitcoin-btc

 

[Guest money]

Thanks. I'll check out the bitcoin link.

If the ASX closes daily at 4pm, and I re-enter a bid at 5pm for the next day, does it get lodged with the ASX at 5 pm, or when the exchange opens again the next day at 10am?

[Caseynotes]

Hi there, IG will manage the order so it won't ever get placed on the exchange as an individual order. I'm assuming ASX is the same as the other indices IG brokers for so once placed the order will be executed once hit except for when the market is closed (between Friday 10 PM and Sunday 11 PM. UK time), unless you are using the special weekend facility.

[Guest money]

I am buying individual stocks on the Australian Stock Exchange (ASX) via a share trading account. It's open weekdays 10am to 4pm, Sydney time.

[Caseynotes]

Oh right, ok, perhaps James might be able to answer that.

[JamesIG]

Validate trades before placing: this refers to the trade confirm - "are you sure you want to place this trade" screen which will appear before you place a deal. I.e. you fill in your deal ticket, place the trade, a screen shows your full order and size etc and says 'do you want to confirm'. 

Last traded: when a stock actually changes hands, i.e. a buy and sell go through. 

L2 Dealer: more info here https://www.ig.com/au/l2-trading-platform

'Out of tick' orders: Apologies about this as I need to slightly amend the previous statement. In the US it should reject the bid, however in Europe and other parts of the world it will automatically place the bid as a passive order. Either way there is no risk of you not being aware of the outcome. In regards to the passive bid the market would still need to trade through that price for it to trigger. 

In regards to the last question...

"if the ASX closes daily at 4pm, and I re-enter a bid at 5pm for the next day, does it get lodged with the ASX at 5 pm, or when the exchange opens again the next day at 10am?"

...I will ask @JasmineC to ask our Australian share dealing team during market hours as I am unaware. 

[Guest money]

The validate trades thing does not work. Note that I place a trade from the trading platform, not from a graph.

Why is the lowest "last traded" value for a day usually lower than the lowest "ask" price? Is the ask price only for unfilled sell orders? I had a chat with an IG staff member about why my bid was not filled one particular day, and he explained that although the lowest last traded price was equal to my bid price, I had to go by the lowest ask price, which was slightly higher.

[Guest money]

Is there a way for me to have several working orders (bids to buy shares) whose total value is greater than my available funds, on the assumption that not all of them are going to be filled, and they stop getting filled when the funds run out?

Also, is it possible to place a bid that will stay open for more than one day?

[Caseynotes]

Hi @money,  a good way to test what is possible is to trail it on the demo platform to show how both the broker and the platform handle different circumstances and strategies. 

For different types of orders see this link;

https://www.ig.com/uk/ig-academy/orders-execution-and-leverage/how-are-orders-executed

There is an expiry on GTC (I think pandaface said the exchange limited them to 3 months) plus different instruments such as futures have their own expiry dates.

 

 

 

 

 

 

 

[JamesIG]

Unfortunately there is no way to have limit orders working for more than the value of the account balance. This applies to share dealing accounts, and leveraged accounts such as CFD and spread betting which will have margin tied up when setting an order. 

As caseynotes said, if you use the 'GTC' option they will be available for more than one day, but get removed from the exchange based on their own rules. 

 

[247trader]

I get the trade confirm screen before I place a deal? 

[Guest money]

Thanks James. Getting back to the L2 dealer thing, it says to contact you guys about fees for data usage. If I use it to find detailed information on trades on the ASX, will I get charged data fees?

[JamesIG]

hi @money - you can see the webpage here which talks about fees and our 'derived pricing' option. https://www.ig.com/au/derived-prices

On the ASX 450 shares will be priced on our platforms using live MTF data (ChiX’s data feeds), the remaining 1700 shares will use a 20 minute delayed price from the ASX. As a client, if you try to trade a delayed share you will be presented with an option to get live ASX data for 10 ticks. Clients will also be able to see which markets are delayed by 20-minutes by the purple 20 icons.

Clients who trade DMA (CFD or Share Trading) will still be able to trade DMA using the new data feeds without paying for live prices. If you would like to see live streaming data for all shares then they can pay for live data however you won’t receive rebates.

I have included some screenshots which you may find useful. 

Delayed pricing 20 minute visual

Delayed pricing '10 ticks' chart

Delayed pricing message

[Guest money]

I installed L2 dealer and tried clicking on the charts button, but it said that was not available for my account. I'm also still confused about what the fees might be for using it, including the fees for a CFD account, if that is what I need.

[Guest money]

A more general question: I would like to download some basic info on all stocks listed on the ASX. I have found a source that gives you the end of day share price for all stocks. I'd like something similar that also gives you dividends, franking, EPS, etc. Is there such a thing? It's easy enough to get for one stock at a time via google, but I'd prefer to be able to download everything at once.