8 replies to this topic

[indian_investor]

hi this is my first post at this forum, so a big hello to everyone. i was holding a stock, which recently got shifted to the trade to trade segment, from cash segment, so i just wanted to know that whats trade to trade segment ? and basically how is it different from cash segment ? i also wanted to know what kind of an impact would it have on the stock, positive or negative and why ?i have noticed that the volumes have gone down. another thing i wanted to know was that the volumes shown besides the stock in a days trade, are the total number of shares traded, both bought and sold, isnt it ? so can anyone please explain? .thanks in advance

[traderpaul]

Welcome to FF. What stock you are talking about? I would not worry about trade to trade, I think it has something with their bookkeeping. Just call up your broker and ask for an explaination. The volume in NYSE and ASE is count once when you buy or sell. On OTC stock it is count twice. (your buy and the other person that sold it to you).

[Mr Dev]

indian_investor,

Welcome, hope you enjoy it here, excluding myself, there are many talented folks.

Me ....I'm still learning.

Of course it doesn't matter what stock you are talking about when it comes to trade to trade.

However I will reserve my explanation because you will still have questions and

may need direction so I will refer you to an excellent accounting agency for
traders.

They will tell you it is important to understand how trade to trade can and will affect you and how to properly prepare things for handling it.

I wish you the best, you can call this number 408-368-0162, ask for Jim Crimmins

http://www.tradersaccounting.com/

If you're asked where did you learn of him,... tell him a Friendly Futures Trader online recommended him.

Mr Dev

[Mr Dev]

indian oops.. see was thinkin mark to market on that well hope the acounting info is still helpful best

[indian_investor]

hey dev and paul, thanks for your help,
actually i mailed the brokerage firm and this is what their reply was:-

We thank you for writing to us,

With reference to your query, we would request to go through the detail information.

Settlement of securities
Settlement has to be done on gross basis without netting off stocks bought and sold in the same settlement.

For purchases of TT Segment stocks in a particular settlement, the client has to mandatory take delivery.

For sales of TT Segment stocks in a particular settlement, delivery is mandatory. The client will not be permitted to offset the delivery obligation by purchasing the stocks in the same settlement. Any purchases have to be separately paid for and delivery taken. Therefore, on any subsequent purchase in the same settlement, the blocks on DP balances will remain till settlement.

Settlement of funds

Settlement will continue to be done on net basis as in case of Rolling settlement. Cash projections against sale of some TT Segment stock will be available for purchase of the same or another TT Segment Stock.

However, funds obligations for the individual segments have to be settled separately without any netting off. Net Cash projections against sale of one or more of TT Segment stocks will not be available for purchase of Rolling Segment Stocks in the same settlement. Similarly, Net Cash projections against sale of one or more of Rolling Segment stocks will not be available for purchase of TT Segment Stocks in the same settlement.

However, Net Cash projections of one segment will be available for purchases in another segment on the next trading day onwards since the cash pay-out day of the earlier settlement falls on or earlier than the cash pay-in day of settlement in which the purchase is sought.

i think they used too much of technical jargon, so my little head wasn't smart enough to understand, anyone can better interpret it please?
regards.
ashish

[indian_investor]

so anyone any idea ?

[U.F.O.]

I think what they're try to say is your account is being handled on these securities on a DVP basis. That's to say if you do a trade, for example, where you sell MSFT and buy CSCO simultaneously, in three days you have to be able to pay for the CSCO independently of any proceeds you'll be receiving on the MSFT sale. Using the proceeds of one trade to settle another is called net settlement.

The question I'd have for your b/d is, These TT Segment stocks, how are they defined? Just certain stocks or everything on the list?

U.F.O.

[indian_investor]

in the BSE, there are a few stocks which fall under this category, the rest of them are other normal stocks, does it mean by ne chance that these stocks dont have a rolling settlement system ? thanks ashish

[U.F.O.]

Beats me Bro, but I'd try to call my b/d to get a specific definition on what this includes or you'll be failing to take delivery one day. I can't imagine it's all the stocks they trade. That would be shocking, especially if they also handle your safekeeping for you. U.F.O.