Contra Netting in Asian Markets
For Singapore and Malaysia markets, buy positions have to be paid or sold off (Contra) latest by the due date (Settlement Date), failing which the company shall at its discretion force-sell the unpaid purchases.
You should not sell any unpaid purchases after the due date. If you are selling off your outstanding purchases after the due date results in a short position that is bought in by stock exchange authorities, any losses arising will be debited to your account.
Auto-Contra policy
If you have selected cash as the payment mode for your sell orders and at the same time, there is a corresponding outstanding buy contract, the broker will auto-contra against your outstanding buy contract regardless of quantity, on a “first-in-first-out” basis.
The Setoff will be reflected in the settlement currency of the buy contract.
Contra / setoff will be applied on trades in foreign securities exchanges will only apply to intra-day trades of the same securities (i.e. buy and sell on the same trade date).
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What is Amalgamation Netting?
The
amalgamation option allows you to combine your orders based on your
average traded price. Instead of incurring a minimum brokerage charge
for each order, you can save on your brokerage fee by combining all your
trades.
The following conditions apply when using amalgamation option:
You must have indicated “Yes” flag for amalgamation on all contracts
The amalgamated trades must be of the same trading day
The amalgamated trades must be of the same stock
The amalgamated trades must be of the same settlement currency
The amalgamated trades must be of the same action (e.g. buy action amalgamates with another buy action)
The amalgamated trades must be the same payment mode
