RE: novice investor5 Dec 2022 00:47
@RD14, I was just highlighting the disadvantage of using a trading account where orders are submitted in blocks like that, which I have been told is how free trade accounts tend to work... Hopefully someone here uses 212, and can tell you exactly how they work, or contact 212 and ask how, and when they submit your order, and what price will you get.
IS that at the price when you placed your order, or the price when the order is executed....
My account, I select the share, I get shown the Bid/ASK, if happy I press buy/sell and qet a quote, at supposedly the best available price, usually somewhere between the mid & bid or ask, I have 15 seconds to take the order.. its done.
I pay £11 for the trade... So I get the price I see...
Call them and check, if you submit an order and it executes some time later, do you get the price
That was just a example using 88e, where the price on that day was flat.. if the price is moving up strongly the spread is less of an issue, you may just get a little less when coming to sell than the guy whose order is executed straight away at best price..
You are going to be trading regular, you have a genuine aim, you want a good account...
Here are some he1 trades, for same spread,
the one seller recieves the displayed bid price 7.8p, the other the best available price 8p, thats £200 more on 100,000 share.. £1000 more on 500,000 shares..
The buys , the one guy pays the full Ask 8.3p, the other get the best price available 8.175p, on 500,000 shares thats £625 less you pay
With your aim of £60,000, fingers crossed you will be trading 500,000 shares and more so you want the £1000 & £625, difference in your account..£1625 better off..
Dont worry now, but find out how your account works, and make sure your money is in an ISA so you dont pay any tax on your profits, you want to keep it all ;)
Block of trades, all at same time
01-Dec-22 15:58:46 8.30 120 Buy* 7.80 8.30 9.96 O
01-Dec-22 15:58:46 8.30 50 Buy* 7.80 8.30 4.15 O
01-Dec-22 15:58:46 8.30 1,204 Buy* 7.80 8.30 99.93 O
01-Dec-22 15:58:46 7.80 435 Sell* 7.80 8.30 33.93 O
01-Dec-22 15:58:46 8.30 500 Buy* 7.80 8.30 41.50 O
01-Dec-22 15:58:46 8.30 50 Buy* 7.80 8.30 4.15 O
.......................................................................................................................
01-Dec-22 16:09:29 8.175 18,348 Buy* 7.80 8.30 1,500 O
01-Dec-22 15:59:43 8.00 83,489 Sell* 7.80 8.30 6,679 O
01-Dec-22 15:59:42 8.00 83,489 Sell* 7.80 8.30 6,679 O
01-Dec-22 15:59:32 7.90 83,489 Sell* 7.80 8.30 6,596
Also sometimes the MM gives you less for selling large amounts, and charges you more for buying large amounts.
So breaking the trade into smaller amounts may benefit you by a fair amount..
Then sometimes when you do that they change the price ;(