How does the stock market for day trading work here? Is it possible to just buy 台股 and sell it the same day? I am not saying buy from the States or from abroad to invest here. I am talking about buying index fund here (and stocks) for day trade/swing trade. But any discussion on the matter is better than my lack of knowledge about this.
I have been day/swinging trading TSM for a while in the US with a US broker, but would like to know about index funds and investing from here.
1 Like
if you have not done it, go open account with local broker.
If regulations are still roughly the same, you can only cash trade for like first three months.
Depending on your total monthly turnover, they will allow you to do intraday trading at some fixed amount maximum per day, say NT$3m.
Before you get that ability, you can day-trade with shares you already own.
For example, if you own 100 lots of TSMC, you can buy/sell up to 100 lots of it.
The risk is that you buy an additional 100 lots thinking stock price will go up and it locks downlimit and you cannot sell the shares you already own (in account) to cover the position. Then you got bigger problems to worry about, like you don’t have money to buy those additional 100 lots.
If you sell thinking prices will go down, but stock limits up, the only worse case is the next day you may have zero shares of TSMC.
Clear?
2 Likes
Cash trade do you mean operating on margin?
Never mind, I mixed up the terms.
I don’t know if I understood you well. Basically would be able to go long or short on the position?
If I have 100 lots of TSM for e.g. And buy another 100 why wouldn’t I be able to sell? Is it first in first out rule?
Yes, I said you would be able to then sell the original 100 lots.
But, I said the only risk is it it locks limit down and you are unable to sell those 100 lots. Then you are liable to find the cash to pay for those second tranche of 100 lots. If you don’t have cash to do so, big problem. So, you have to manage that risk.
1 Like
Can you open an eWallet on a stocks trading platform, link it to a Taiwanese bank and then transfer funds into it to trade with?
for example
CTBC account transfer to eWallet (trade stocks) and transfer back to CTBC account from eWallet.