FAQ

Frequently Asked Questions about Trading

Which Stocks are Affected by the Carbon Tax?


Australian Carbon Tax Affect on Stocks and the Stock Market

On Sunday July 10th this year, the Australian Labor Gillard Government announced a new carbon tax to be levied on the top 500 polluters in Australia. The companies would be taxed at $23 per metric tonne of carbon emissions starting at the beginning of the 2012-2013 financial year, July 1, 2012. The release of the news of the carbon tax has certainly affected stock prices across the Australian stock market and may affect your share trading.

Australian Renewable Energy Companies


Researching to trade shares or invest in Australian Renewable Energy companies?

Researching for Australian renewable energy companies to invest or trade shares? Or environmentally friendly companies listed on the Australian share market? Or to invest in ethical energy investments on the stockmarket? Well here's a list of the utilities companies found on the Australian stock market. The ASX has a variety of businesses listed on their stock exchange which represent the clean technology industry. These Australian renewable energy companies operate in biofuels, wave and solar energy, biogas and geothermal.

Australian Clean Technology Companies


Researching for Australian Clean Technology companies to invest or trade shares?

Researching for Australian clean technology companies to invest or trade shares? Or environmentally friendly companies listed on the Australian share market? Or to invest in ethical investments on the stockmarket? Well here's a list of the cleantech companies found on the Australian stock market. The ASX has a variety of businesses listed on their stock exchange which represent the clean technology industry.

What is an Annual General Meeting (AGM)?


Lean about the Annual General Meeting (AGM)

The Annual General Meeting (AGM) is a yearly meeting where shareholders (retail, wholesale, private, share traders, investors, etc), as part owners of the company can legally ask the board of directors questions pertaining to the publicly listed company's corporate strategy and financials.

List of Australian Research Houses


A List of Aussie Financial Research Houses

Research houses – sell and provide customised research solutions for wholesale clientele, which consist of dealers and the large financial planning entities which on sell their advice to retail clients - the public.

Examples of Australian Research Houses

  • Lonsec
  • van Eyk
  • Zenith Investment Partners
  • Aegis
  • Morningstar
  • Standard and Poor's
  • PIR
  • Mercer
  • ... and more.

Examples of Dealers and Financial Companies Which Buy Research

What is the difference between an index option and a share option?


Difference between an index option and a share option
  • The premium and exercise level of an index option is expressed in points, which is converted to dollars through a contract multiplier of $10 per point.
  • Index option can only be exercised on the expiry day, while share options can be exercised at any time. However you can close out your option position any time.
  • Index options expire six quarters ahead, listed in March, June, September and December. Stock options on the other hand expire on the third Thursday of the expiry month. Trading stops at 12 noon on the expiry date.

What are Futures?


Everything about futures.

Futures, like options and warrants, are derivatives. Derivatives get their value from an underlying security or asset. However, unlike options, futures are contracts that give you the right as well as the obligation to exercise that right by a specified time period.

What is CHESS?


Everything about CHESS (Clearing House Electronic Subregister System).

When share trading, legal ownership of your share allotment must also change hands. Along with the title to the shares, the seller gets paid and the buyer gets the product in an exchange called a settlement.

In the Australian Securities Exchange (ASX), settlement is facilitated by a computer system called CHESS or Clearing House Electronic Subregister System. CHESS is operated by the ASX Settlement and Transfer Corporation (ASTC). CHESS registers the share title or ownership electronically.

Why Should I trade a CFD (Contract for a Difference)?


Advantages of CFD

In a nutshell, CFD is an arrangement in a futures contract wherein the difference is settled through cash payments. The difference is determined by the underlying share, index or commodity. The two main advantages of trading CFD is leverage and its ability to go ''short''.

How to Trade Futures


How to Trade Futures

Futures is a popular day trading contract. It enables traders to buy a certain quantity of an asset for a predetermined price date and price. However, unlike in options, the traders are obligated to buy and sell. Futures traders have to follow the terms and conditions of a contract.

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