Frequently Asked Questions

Contra

What is contra?

It is a form of trading where the investor does not collect the securities he purchases nor delivers the securities he sells, but arranged to settle outstanding differences which may be profits or losses. For more explanation or glossary, please refer to SGX website.

Can I trade contra with POEMS?

Yes, contra will take effect automatically as long as it meets the criteria. The Contra period is defined as the period from the day (T) you bought the stock and the due date (D). Please note: Contra option is available for Cash Management (KC) Account and Trading Account, and not available for CPF/SRS trades.

Which markets does POEMS offer contra trading?

Countries Exchange Settlement Date (D date)
Singapore SGX T+2
US NYSE T+2
NYSE-MKT T+2
NASDAQ T+2
Hong Kong HKEx T+2
Hong Kong HK Pre IPO T+2*
China SSE, SZSE T+3
Taiwan TWSE T+2
Malaysia Bursa T+2
Indonesia IDX T+2
Philippine PSE T+3
Thailand SET T+2
Japan JPX T+2
South Korea KRX T+2
Australia AXS T+2
Canada TSX T+2
Belgium Euronext Brussels T+2
France Euronext Paris T+2
Germany FWB T+2
Netherlands Euronext Amsterdam T+2
Portugal Euronext Lisbon T+2
UK LSE T+2
Turkey BIST T+2
* T date is the IPO date and not the PreIPO date

Under what circumstances is contra performed?

Contra is performed as long as there is a corresponding SELL contract to match against an outstanding BUY contract of the same counter (not applicable to CPF/SRS trades) on condition that the outstanding BUY contract is purchased ON or BEFORE the SELL contract date. The quantity of both contracts (i.e. BUY and SELL) may not exactly match and the Contra quantity is based on the lesser number.    

Will contra be performed if the settlement currency of a SELL contract is different from that of the outstanding BUY contract?

Yes. The settlement currency of a SELL contract will be changed to the same settlement currency of the outstanding BUY contract.

When must I make payment for contra losses?

Contra losses must be settled WITHIN 7 calendar days (or 1 week) from the statement date.  

Can my contra-profits of Stock A be used to net-off losses from Stock B?

Yes, contra-profits will nett-off any outstanding losses.

If I am settling by GIRO, can I contra?

Yes, only for Cash Trading Account. You may do so within the contra period.

When will the contra loss/gain be settled under GIRO?

For contra loss: The bank will deduct the funds on contra statement date + 1.
For contra gain: Contra gain will be paid out on contra statement date +1 and no reversal is allowed once paid.
Only Available for Cash Trading Account.

When will the contra loss/gain be settled?

Settlements (For Purchases)
  • Payment in (S$) from clients should be made by contract due date.
Settlements (For Sales)
  • Sales proceeds will be paid to clients on 1st market day after due date.
  • Contra gains will be paid out on contra statement date + 1.
  • No reversals are allowed once paid.
  • Contra is allowed on the transaction day itself.
  • Clients will receive a monthly statement of all their transactions done in that month.

Please note:

a. Contra gain will be credited to trading account or your designated bank account for non-ledger based trading accounts.

b. Contra loss will be deducted from trading account if there are sufficient funds.

c. Interest will be chargeable if contra loss is not settled within 7 calendar days,

What is the settlement currency of contra gain and loss for contracts opted to settle in traded currency ?

For accounts with no multi-currency facility, contra gain and loss will be settled in SGD.