Frequently Asked Questions

Short Selling

How do I determine if my order is a normal sell or short sell?

A Short Sell Order refers to any sell order where the seller does not own the security to be sold at the time of placing the order.

How should I indicate my sell orders?

If you intend to sell more shares than the quantity you own, you should submit separate sell orders. You should place a normal sell order for the shares which you own and a short sell order for the quantity that you do not own.

Scenario:

  1. You do not own any share of Stock A and you intend to short sell 1,000 shares of Stock A. You have to submit a sell order of 1,000 shares by marking the “Short Sell” checkbox or click on the “Short Sell” button.

  2. You owned 2,000 shares of Stock A and you intend to short sell another 1,000 shares of Stock A. You have to submit a normal sell order of 2,000 shares, and separately submit another sell order of 1,000 shares by marking the “Short Sell” checkbox or click on the “Short Sell” button.

How can I indicate a “short sell” order in POEMS platforms?

  1. POEMS 2.0
    Select the "short sell" checkbox.
  2. POEMS Mobile
    Use the "short sell" button to execute the trade.
Alternatively you can call in and ask your Trading Representative to submit a Short Sell order.

Is it limited to SG market only?

Yes, “Short Sell” indication is limited to SG market only.

While I already own the shares, what if I marked the “Short Sell” checkbox wrongly and the order has been executed?

You are required to inform your Trading Representative immediately once you discover your executed sell trades have been marked wrongly.

What if I short sell a counter and did not cover my position on the day itself?

SGX will regard the sale transaction as a short-sell and will conduct a buying-in on due date.

Are there any penalties on short-selling?

If you do not have the required shares in your account on the due date (the third market day following the trade day), SGX will buy-in shares on the market to satisfy the delivery obligation.

If the buying-in is completed by SGX at the end of Trade Date +3, no penalty will be imposed. However, if the buying-in by SGX is unsuccessful on Trade Date +3, SGX will continue on Trade Date +4 and Trade Date +5. A penalty, of the higher of S$1000 or 5% of the value of the failed trade not bought in will be imposed.

SGX imposes a processing fee of S$75 + GST for each failed contract and charges a brokerage fee for buying -in contract at 0.75% + GST of contract value.

For further information or clarification, please contact your trading representative.