Transaction Rules Switzerland
Here are the opening hours of markets, the types of orders authorised under the markets, their validity periods, the trading hours. That is to say, all the information you need to invest better!
Keytrade Bank offers online access to the SIX Swiss Exchange.
The SIX Swiss Exchange is the market where you can trade Swiss and international shares.
SIX Swiss Exchange has been created as a real response to the ever-growing demand from both the investment and corporate communities for a pan-European blue chip. You can trade bleu chips (Swiss as well as international).
De SIX Swiss Exchange is open from 9 a.m. till 5.30 p.m. SIX Swiss Exchange is open from 9 a.m. till 5.30 p.m. The orders are sent to the stock exchange from 8 a.m. onward, but remain in "Wait" status until 9.00 a.m. Day orders are cancelled at 5.30 p.m. Orders placed after 5.30 p.m. are sent to the exchange on the next trading day.
Types of orders allowed
1° Market order
A market order makes it possible to buy or sell securities immediately at the best price available on the market. It gives you no guarantee on the final price of the transaction (especially if there is high activity in the security), but on the other hand there is a greater probability that your order will be executed. If you want to place a market order, do leave the "price" field empty.
2° Limit order
A limit order is an order at a certain price and certain quantity, which can be executed in total or partially. If there is a partial execution the non-executed part remains in the order book.
It makes it possible to set a limit both when buying and selling, but of course gives no guarantee concerning the execution of the order.
For example, with a sell order the limit price is the minimum price at which you are prepared to sell, your order will not be executed at a lower price. When you want to place a limit order, you need to fill in the field "price".
3° Trailing Stop orders
When placing a trailing stop order, you specify a 'distance to market’, instead of a limit or stop price.
If you are selling shares with a trailing stop order, your stop price will always follow the share’s last price upwards. The stop price can never go down. The initial reference price will be the current last price. Your stop price will then automatically follow the last price when it goes higher respecting the distance you specified. Your stop price is going to change intraday.
For a trailing stop order on the buy side, your stop price follows the share’s last price downwards. The price can never go upwards. The initial reference price will be the current last price. Your stop price will then automatically follow the last price when it goes lower respecting the distance you specified. Your stop price is going to change intraday.
Once the stop price is reached, a market order is automatically sent to the market. This order is valid until the end of the current day. Caution: for illiquid shares, you may receive a bad price or even no execution at all!
An example of a sell order A share quotes 100 euro. You place a trailing stop order to sell with a distance of 1. Your stop price is 99 euro. As long as the share does not fall to 99 euro, the sell order will not be activated. The stop price will follow the share price upward while keeping a distance of 1 euro. The stop price can never go down. When the price reaches a new high of 104 euro, the new stop price will be adjusted to 103 euro.
An example of a purchase A share quotes 50 euro. You place a trailing stop order to buy with a distance of 0.5. Your stop price is 50.5 euro. As long as the share does not rise to 50.5 euros, the order will not be activated. The stop price will follow the share price down while maintaining a distance of 0.5 euro. The stop price can never rise. When the price reaches a new low of 45 euro, the new stop price will be adjusted to 45.5 euro.
During the continues phase on the market we will send a market order to the market when the stop price is reached, outside the continues faze we will send a limit order where the limit is the last traded price. (on Euronext this phase is known as the TAL period (Trading At Last).
Trailing stop orders are not possible for warrants, turbo’s and other derivatives.
Duration of the validity of orders
It is possible to specify how long placed orders are to remain valid. There are two possibilities:
- Day Your order will be valid for that day only. If it is not executed, then it will be automatically cancelled. In case you entered a day order after closure of the stock exchange, your order will be valid the next trading day.
- GTC (Good Till Cancelled - Valable jusqu'à annulation)Your order will be valid for 90 days. If the date you introduced is a holiday, your order will be valid till the closure of the working day after the holiday. You, the stock market or Keytrade Bank can cancel the orders.
Remark 1: When a day order partially gets executed during a trading day, the remaining part that has not been executed yet will be cancelled at the end of the day. If you want the remaining part to be traded, you will have to enter a new order for the remaining part. For this new order a transaction fee will be counted.
When placing a GTC order the remaining part of the order will still be valid on the market until it will be executed or cancelled. In this case you only pay one transaction fee, regardless the number of partial executions.
Orders can be cancelled either by you, by the exchange or by Keytrade Bank.
Remark 2: If you wish to use the revenue of a sell, you must take into account the value date of the generated cash.
Tick sizes of the market
|Mid-and Small Caps|
Value dates per market:
Euronext (Brussels, Amsterdam, Paris)
London Stock Exchange
OMX (Helsinki, Stockholm, Copenhague)
D+3 (the value date is stipulated by the issuer)
Remark 3: If you enter a limit order, your limit may not diverge too much from the last price. If you don’t respect this rule, your order will be rejected. In the diagram below, you find the authorized deviation compared to the stock price.
|Stock price||authorized deviation|