The stock market isn’t like a supermarket where you can stroll in and make purchases right away. Investors must be aware of specific rules and methods to get the most out of their initial trading experience and achieve their investing goals. Understanding this can assist you in reducing risk and ensuring that each decision you make is in line with your investment.
1. Opening Account
When it comes to starting your stock trading career, the first step is to open a trading account. There are ten securities firms licensed to provide stock brokerage services in Cambodia. To discover which broker is ideal for you, contact each securities business for more information about their services and commission rates.
Your broker will walk you through the steps necessary to start an account, such as filling out the relevant forms and requesting the relevant papers. Whether you have a general or technical question or are looking for financial guidance, your broker will be your first point of contact.
2. Placement of orders
After successfully opening a trading account with your preferred broker, you may ask them to issue a buy/sell order for you using any of the following methods:
- Mobile Trading System MTS from your mobile phone;
- Written document;
- Other communication suggested by your broker.
3. Understanding trading rules
When trading stocks on the Cambodia Securities Exchange (CSX)., there are several rules to follow. The following are the primary areas that investors should be aware of:
- Trading hour: The trading hour is the period when investors can place their buy/sell order on the market. The current trading hour at CSX is from 8 AM to 3 PM Monday to Friday, except public holidays.
- Trading currency: At the CSX, securities are traded in Cambodian riel.
- Good faith deposits: A minimum deposit is not required in a trading account, unless when placing orders; however, investors must have 100 percent of the cash/securities to place an order. For example, if you would like to place a buy order of 40,000 riel worth of shares, you need to have at least 40,000 riel in your cash balance plus the commission fee.
4. Trading Procedure
Your order will be transmitted to the CSX system after it has been placed through your MTS or broker. The system then matches your order with the counter party based on the order type, price, amount, and other trading rules factors. You will be notified of the trade result after the successfully executed orders.