This is the Part 2 on the series. I hope that you understand the process and the option available when opening your trading and CDS account which explain in Part 1.
If you read Part 1 before I publish Part 2, please revisit that page as I write in additional information in relation to cash upfront or collateralised account which I think quite important.
Part 1 – How to Open Trading and CDS Account for Trading in Bursa Malaysia?
Part 2 – How to Buy and Sell Shares in Bursa Malaysia?
Part 3 – How to Determine Trading Settlement in Bursa Malaysia?
Part 4 – How to Calculate Profit, Loss and Brokerage Fees in Stock Market Trading?
Step 1 – Deposit Cash
Once you open Trading and CDS Account, the next steps before buying shares is deposit cash to your trust account. Depending on your broker, you can make deposit either via cheque, cash or through online banking to your broker bank account.
Step 2 – Check Shares Price
In Bursa Malaysia, shares are traded on all working days of Federal Territorries (Wilayah Persekutuan) between 9.00am to 12.30pm for morning session and 2.30 pm to 5pm for afternoon session. However, Bursa Malaysia allow orders to be send 30 minutes before each session but no matching will be done.
For offline trading account you can call your remiser or dealer representative to check shares price.
If you have an online trading account, by now you should have username, password and broker website address. Login to your account and get familiarised with the interface.
Make your favourite folder and add your favourite counter in that folder so that you can easily monitor the shares price movement.
Shares price will move based on tick sizes set by regulator. The tick size is the minimum price variation between the buy and sell price for a share.
The table shows the tick sizes for shares listed in Bursa Malaysia.
| Shares Price | Tick Size |
|---|---|
| Below RM1.00 |
0.5 sen
|
| RM1.00 to RM2.99 |
1 sen
|
| RM3.00 to RM4.99 | |
| RM5.00 to RM9.99 | |
| RM10.00 to RM24.99 |
2 sen
|
| RM25.00 to RM99.98 | |
| RM100.00 and above |
10 sen
|
Step 3 – Initiate Buy Order
When you satisfy with the choosen counter after researching the company fundamental or technical analysis, you can start place a buy order.
In Bursa Malaysia, the minimum number of shares or stocks you can buy or sell per transaction is 100 units. In other word, if the shares price at RM1 per unit, you need at least RM100.
For Offline account, call your remiser or dealer representative to place an order. He or she will key-in your order based on your choosen price and amount of shares. The order will be send electronically to Bursa Malaysia computer system.
Bursa Malaysia system will check whether there is any seller that match your price. If there is no seller, your order will be put in queue until there is seller that willing to sell that match your price. Your remisier will to update you on the status of your order.
For Online account, place your order through trading interface by specifying your choosen counter, number and quantity of shares to buy. The trading interface will send the order to your broker computer system and subsequently route it to Bursa Malaysia computer system.
The same process as above will occur in Bursa Malaysia computer system. You can see the status of your order in your trading interface.
Step 4 – Initiate Sell Order
After succesfully buy your choosen shares as in Step 3, you may sell it anytime during trading hours. If you notice that the shares price appreciate and you already make profit, you can send a sell order. The process is similar as in Step 3 but make sure that you place a sell order instead of buy.
For both buy and sell order, a contract note will be sent to you by your stockbroking company to confirm your transaction.
For online trading, do we need to deposit the cash to trust’s account before doing the transaction ?…Before I saw this term called, T+1 which means the stock purchase will not occur till certain period of time or some sort of like that…..
Also, it is possible if we bought the share in the morning & sell it in the evening?….Because i heard short selling is not allowed in Bursa?
Lokman
Yes, you need to deposit the cash prior to that but you can purchase more than your cash for collateral account. Without initial cash, your trading limit is zero & you can’y buy any shares.
Check out Part 3 regarding trading settlement.
Yes, you could do that. We call this day trading not short selling.
Hi, i dont realy understand what on earth is the tick size and minimum bid.
does it mean for exsample stock A on the market is prised at RM 0.05 but if you want to buy it you have to pay RM 0.55 (RM 0.05 + RM 0.5 tick size)?
or does it mean that if we buy a stock at RM 0.05 we have to wait till it goes above/bellow RM 0.5 to sell it?
Anyway, why doesnt BSKL just put a fix price based on the market for buying and selling stock?. Because this will make it dificult for trading.
e.g:
i own stock A and it goes down from RM 0.40 to RM 0.30.. so to stop ferther loss i desided to sell the stock at the market price which is RM 0.30. but i am unable to sell it since others are selling it at RM 0.20.. now i have to lowerdown my price. isnt that unfair?.. same goes to buying..vice versa
and doesnt it seem to much for a stock bellow RM 1.00 to have a tick size at 0.5?. eg stock priced at RM0.01, that is 50 times higher then the stock price it self.
TQ
Read it again carefully “Shares price will move based on tick sizes set by regulator”. The key word here is “MOVE”.
The tick size for shares below RM1 is 0.5sen not RM0.50.
Oh.. ok..
you made my day!!
TQ
I am a foreigner, can i buy stock or shares in Bursa malaysia? how do i get a broker to help me
Yes you can. You have to go to broker office to fill up and sign the form. Make sure you bring your passport.
I just wanna to ask, when we buy share online, which column should we refer to buy, izit the ”buy” or ”sell” on the screen?
You should click “Buy” 🙂
can explain further about tick size ?
Hi new trader,
I think it clearly written in the post. Which area you don’t understand?
Hi,im new to this shares deal..
how exactly can i start?
martin, you read all the 4 series on this guides. The first step is to open CDS & trading account.
hi, short sell is not allowed, what does that mean? when can i sell my shares? thanks alot.
samla, short sell means that you sell shares that you don’t have. If you have the shares you will be able to sell.
hi,
are there any prerequisites or requirement before opening a CDS account ? thanks
Hi.. recently, i have succesfull to subscribe an ipo share about 2000 unit, can i just use online trading to sell my share.. i have open online trading account with maybank, but got 2 trading number… which one i have to use
mansor, yes you can use online trading. Which CDS account you use to apply? You must use that account for trading.
Can I transfer my profit/money from trading account to my savings account through online…
mansor, I have no idea as I don’t use Maybank.
tq 4 ur swift response… 🙂
Mr 1mdb, What is non-margin facility.. do i need to open non-margin facility (maybank) if i want to buy new share in open market.
mansor, non-margin facility is you only use your own money to buy. I prefer this as the fee is lower.
Hi , what is “buy volume ” means ? if the the buy volume is 4 , does it means i have to buy 4 of (“00) ?
marie, it means that there people (s) que to buy 400 units of share.
DiGi is currently 5.140 does it mean that its RM51.40 per share of Digi?
It is 5.14 per share 🙂
Hi, noob here. You said that when we buy or sell shares, a contract note will be sent to us. Is it through snail mail? What if I don’t have a permanent address or if I am overseas? How does that work? Thanks.
Hi, you can opt for contract note to be send by e-mail.
Hi Shah here, what it means by buy volume (’00) and sell volume (’00)? Let say for this particular index, XYZ, the buy volume (’00) = 630 – Is it 63000 lots for buy or what? And and sell volume (’00) = 382 – is it 38200 lots for sale? I always got confuse when comes to buy volume and sell volume. I am not sure how to understand the buy and sell volume, is it buy lots, shares or what quantity? Thanks for educating me.
hi, I need your help to educate me. I used to have an account with Jupiter & recently they have suspended my account due to inactivity in my account. I do have existing shares on hand. What is going to happen to my existing shares? Can I open another trading account with Maybank Invest & trade my existing shares there? Many thanks!
Hi shahrul here. Actully i very intrested to be a investor but i need a futher information. If you don’t mind to meet me and share with me the information. My english is not so good but i try to have a good conversation with you. Just drop me an email if you able to help me 🙂
Hi Shahrul, I think there is a lot of information in this blog about stock market. I think you should be able to invest in Bursa Malaysia after going through it.
Don’t quite understand how DBT works, can a substantial shareholder sell his shares in a listed company (say 25%) to a buyer on a willing buyer/seller basis or must the price and settlement terms be approved by Bursa? Who to ask for approval, seller or buyer’s broker?
Hi mr million, can you explain a few things. I am malaysian but living abroad. I have an RHB savings/bank account. I just signed up with RHBinvest (after reading your blog, i assume this is my online broker right?) yesterday. At the end of the registration, it said 3 day free trial. I had been playing and familiarising myself with the online platform and tried to click buy but it said this option is not available for guest. I presume, this is because i am still in the 3 day trial period? In the tutorial video provided by RHB, there was no mention about opening a trading account/trust fund/cash upfront. I dont know if i still need to open this or can i just use my current savings in my existing RHB account, since technically they are my online broker? If not, do i need to go back to malaysia to open this account?
Idris, have you submit complete application form? Trading with trust account will be opened after you do. I think you can submit the complete application form by mail.
You can’t use your current account.
If i buy penny stock at 0.110 and then the market price increase to 0.120 can i sell at 0.120 or not. (10lot)
Yes, you can sell at that price.