Assuming you had indicated that when you buy and sell shares, the amount will be auto deposited or deducted from your GIRO bank account.
Example, if today 21st Dec you sell $30,000 of Singtel shares and you buy $30,000 of Citydev shares (meaning both trades's settlement dates are on 24th dec), but your bank account now only has $6,000 , my question is then on 24th dec, will the $30,000 sales proceeds from selling the singtel shares be deposited in time into your GIRO bank account for the $30,000 purchase amount of Citydev shares to deduct??
Or will not be in time and the Citydev shares will be force-sold by your brokerage??
Who knows the correct answer to my this above question??
My take is that the sale proceeds will be deposited like clockwork into yr account.
As for your purchase settlement, if Giro can't deduct, surely your broker will be informed and will contact you. And give you an extra 1 or days grace period. goodluck!
You are right. It only works for cash settlement.
However it does not work for SRS and CPF trades. For SRS trades, you need to sell first and then buy on the next trading day. Its always safer to check SRS balance before buying.
For CPF trades, you will need to sell first as well. However do for CPF trades, do check your CPF 35% stock limit before buying even if you sell a day or a couple of days before. You will need to make sure that the funds are deposited back into your account first. Hence do exercise due diligence and check your CPF 35% ordinary account stock limit.
Saw some FB posts and thought it's worth sharing :
Q: Today I sold some shares I had bought in the past with CPF savings. But the settlement was reflected as ‘Cash’ when the order was filled. I remembered that I clicked "CPF" as settlement. Can I check if this is what it supposed to reflect ? Sorry first time selling in DBS Vickers.
a) Better ask broker to revert to cpf sales if not will be taken as short selling, subjected to buy back on market price.
b) It’s better to call broker on the transaction day so that the broker can rectify.
c) Check your order book on yr trading system