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.
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