For Every Beginner | ASX Stocks Trading Rules & Process

Hi Tigers,

@ASX_Stars account is set for collecting and publishing the stocks and market situation about the Australian stock market. If you have and expected content or question needed, please leave your message at the comment session.

In this article, it summarizes the general situation of the Australian stock market, the order placing process , a total 8 points to help you master the basic knowledge of Australian stock speculation.

01>

ASX ( Australian Stock Exchange, the official website is asx. com. au), the only one common stock exchange in Australia, has more than 2000 Australian and international companies listed and traded.

The Australian Securities Exchange (ASX) is the largest in Australia and contains over 2,000 companies with a market capitalisation over $2 trillion (AUD).

The specific stock code can be queried here: https://www2.asx.com.au/markets/trade-our-cash-market/directory

02>

The $S&P/ASX 200(XJO.AU)$ is considered the best benchmark for measuring the Australian share market. The index covers about 80% of the market capitalisation of Australian stocks.

The Australian Stock Exchange uses the Global Industry Classification Standard (GICS) method of categorising companies. In total the ASX is broken up into 11 Sectors, 24 Industry Groups, 69 Industries and 158 Sub-industries.

The weights of 11 sectors are:Financials (30.1%), Raw Materials (17.6%), Healthcare (10.9%), Consumer Discretionary (8.2%), Real Estate (7.1%), Industry (7.1%), Consumer Staples (5.2%), Information Technology (4.6%), Communication Services (4.3%), Energy (2.9%), Utilities (1.5%).

03>

Australian stock trading is T + 0, that is, you can buy and sell without restrictions on the same day (there may be restrictions on different brokerage platforms). That is, you can freely trade stocks that have not been fully delivered, or you can use unsettled incoming funds to buy stocks;

04>

ASX's main indexes include $S&P/ASX 200(XJO.AU)$ and $S&P/ASX ALL ORDINARIES(XAO.AU)$ . The former reflects the weighted average price of the largest 200 companies that meet the requirements, while the latter reflects the weighted average price of all listed companies. The average price earnings ratio of Australian stock market is only 14 times, because financial companies account for an important proportion.

05>

Australian stocks as a whole are relatively stable, but some stocks can double or fall by half in one day, without daily fluctuation limit. At the same time, Australia has a perfect IPO registration system and delisting system. The IPO of new shares adopts market pricing, the subscription of new shares may also suffer losses, and the shares held may also be delisted. Therefore, Australia will pay more attention to the analysis of financial indicators, the credit quality of the company itself and the development trend of the industry.

06>

The two major industries in the Australian stock market are resources (energy companies such as $BHP GROUP LTD(BHP.AU)$ , $Rio Tinto Ltd(RIO.AU)$ , $Wiluna Mining(WMC.AU)$ , $BRAMBLES LTD(BXB.AU)$ , etc.) and Finance (four major banks $COMMONWEALTH BANK OF AUSTRAL(CBA.AU)$ , $NATIONAL AUSTRALIA BANK LIMITED(NAB.AU)$$WESTPAC BANKING CORPORATION(WBC.AU)$ ,$AUST AND NZ BANKING GROUP(ANZ.AU)$ and insurance companies). Other major industries include information technology, medical and health care and telecommunications services;

07>

Trading channel: Securities companies: open stock trading accounts through securities companies to buy and sell stocks traded on the Australian Stock Exchange. Investors' trading orders must be executed by securities companies and can be placed by telephone or online.

08>

Order placing process of Australian stocks

There are two ways to purchase stocks through the platform:

Mark order, without filling in the price, directly buy at the current lowest selling price or sell at the current highest buying price.

Limited order, the price of buying or selling is determined by yourself. Of course, it may not be possible to clinch a deal.

09>

The ASX is open 10am - 4pm (AEST), Monday to Friday.

The ASX requires a minimum parcel of $500 to be traded if you do not currently hold that particular security. Once you possess $500 worth of an individual security you may purchase any value of shares you wish.

$ASX LTD(ASX.AU)$ ,$S&P/ASX 300(XKO.AU)$ ,$Ishares Core S&P/Asx 200(IOZ.AU)$ ,$SPDR® S&P/ASX 200 Fund(STW.AU)$

# ASX Stocks Opportunities

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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  • EggWhite
    ·2022-05-10
    Thanks for sharing [smile] [smile] [smile]
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  • deben
    ·2022-05-11

    For every beginner

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  • Shank88
    ·2022-05-11
    nice thabks
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  • 37b31978
    ·2022-07-05
    Good tips
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  • Yogi1995
    ·2022-06-21
    thanks bro
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  • Yogi1995
    ·2022-06-21

    @ASX_Stars [Cool] 

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  • poh007
    ·2022-10-30
    [微笑]
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  • SkyClone
    ·2022-10-30
    ok
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  • GSMeet
    ·2022-10-12
    Thanks
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  • berry yung
    ·2022-09-22
    [Cool]
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  • Koeshine
    ·2022-09-05
    Ok
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  • aniff aziz
    ·2022-08-14
    how this work?
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  • Patt_Bull
    ·2022-07-06
    👍🏻
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  • chanmh
    ·2022-06-20
    👍
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  • loozai
    ·2022-05-30
    good
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  • 30b85c4f
    ·2022-05-28
    ok
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  • Stingray8
    ·2022-05-14
    K
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  • Wendy yang
    ·2022-05-12
    Than ks
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  • Wendy yang
    ·2022-05-12
    Th anks
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  • Alan1985
    ·2022-05-11
    Nod
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