How can I trade a stock with a price band?

vegasbabay · 1 How can I trade a stock with a price band? Wed Aug 10, 2011 11:26 am

vegasbabay

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How can I trade a stock with a price band? Do I have to contact the broker?

charith82 · 2 Re: How can I trade a stock with a price band? Wed Aug 10, 2011 11:41 am

charith82

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Yes. When price band applies you cant buy that security through online system. but you can sell it if u have. Even with the price band if u want to get a risk and buy some shares u have to contact your broker adviser and asked him to buy behalf of u.

twimalasuriya · 3 Re: How can I trade a stock with a price band? Wed Aug 10, 2011 11:48 am

twimalasuriya

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vegasbabay wrote:How can I trade a stock with a price band? Do I have to contact the broker?

last time i checked it was like below

1. you can not buy or sell in CDAX (i think other online solutions also do not allow)
2. if you want to buy, you must have cash balance to buy it. have to call broker to buy.
3. if you want to sell, again you have to call broker.

also please see

http://www.sec.gov.lk/SEC%20Directive%202%2014-09-2010.htm

charith82 · 4 Re: How can I trade a stock with a price band? Wed Aug 10, 2011 11:58 am

charith82

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Are you sure about selling? the online system which iam using allow me to sell band securities. I think that should be the correct way. coz idea of the price band is to protect retailers and minimized the risk. There is no risk in selling the already acquired share.

twimalasuriya · 5 Re: How can I trade a stock with a price band? Wed Aug 10, 2011 12:04 pm

twimalasuriya

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charith82 wrote:Are you sure about selling? the online system which iam using allow me to sell band securities. I think that should be the correct way. coz idea of the price band is to protect retailers and minimized the risk. There is no risk in selling the already acquired share.

On Jan 11th 2011, I wanted to sell 1000 PCH.N0000 shares , but it was under price band and was not working in CDAX. That is the only occasion I ever asked the broker to sell on behalf of me.

May be the rules are different now.

asigiriyage · 6 Re: How can I trade a stock with a price band? Wed Aug 10, 2011 12:05 pm

asigiriyage

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i am using cdax i have both facility bcs i did in the morning it self

charith82 · 7 Re: How can I trade a stock with a price band? Wed Aug 10, 2011 12:16 pm

charith82

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Price band is not a mandatory rule. Its act as a protecting measurement for clients against highly volatile price (sudden up or down). every day CSE sending band security list to all stock brokers. Brokers suppose to update that file to there systems.but broker can neglect it. if he neglect it then price band will not apply for there system and any one can buy or sell band securities through there system. But remember when you buy a band security there is a very high risk involved with that transaction.