Limitations on oder SET/MAI entries.
Buy/Sell orders entered on the SET has a number of limitations as compared to many other exchanges.
There are still no so called “stop limit/loss” orders offered here. These get executed automatically if a stock trades at a certain given price, or even at a lower price limit then the given order price. At this point a sell or buy order gets instantly executed. This execution is at the given limit price, or at the next market price –all depending how the order was entered. The point is that such carrying out is automatic and not dependent on the broker doing anything. Such buy/sell orders are essential for traders, yet absent here.
Then, you also cannot enter orders with say the stipulation of “all or none”, where you have a block of shares to buy or sell, with the stipulation that you would want the whole lot transacted at once, at the given limit price. Meaning as it says: all or none. You can only enter orders “fill or kill”, but this does not work as it is not a standing order, it instead just cancels out the second its not filled.
Or how about a switch? Say you want to buy a stock on some current weakening. Yet, to pay for it you need to sell another, but this you only want when the buy order gets executed -at that desired limit price. Such orders cannot even be entered, even while you have the portfolio with the broker to guarantee it. For anything like this you first need special approval from the branch manager -and so time delays. This is an unnecessary nuisance. In the US as broker I never had such bold restrictions.
The final pricing of a stock during a session. Final market opening and closing prices and last executions should be better explained/understood by the average investors here. (I.E. being provided by the SET/MAI stock exchanges and their brokers). Realize as one example that if you enter a buy order on the closing rotation you still may not get filled -even if the closing price is the same limit price you gave. This is because others' entered orders at a higher then your given price.
Stop loss orders, so called “all or none” and buy a stock first only to later during the day sell another, are all keen execution tools which can be used wisely by investors and traders alike, yet are keep being not offered by the SET or the MAI.
I just site some examples here, there may be more. As a side line, you can also enter buy/sell orders by mobile phone, but when I tried recently it failed due to an error on the decimal? After that my pants got washed with the mobile phone it, wasting it down to zero value. You must have your mobile tuned correctly into the brokers networkt. Besides, you can also easily get SET/MAI instant quotes via SMS to the exchange or through internet to one say SETTRADE.COM .
The absence on particullarly so called "stop loss" orders are especially odd, considering that so many brokers and clients here alike keep leaning to day trading which is a speculative activity that can be detrimental to your financial health. Especially so without the proper order tools.
Best Regards,
Paul A. Renaud.
