Hi Anon,
Yes it is possible to profit off capital appreciation in a RSP.
You are able to request a sell order at anytime.
However, there may be a lag time between you requesting the order and the bank actually executing the order.
Take for example, the OCBC BCIP plan.
The terms and conditions states that "If a Customer’s Sale Instruction is received by OCBC Bank on or prior to the Cut-off Time, the Sale Instruction will be effected on the following Business Day (the “Sale Date”). If the Sale Instruction is received by OCBC Bank after the Cut-off Time, the Sale Date shall be two Business Days after the Sale Instruction is received by OCBC Bank."
So I wouldn't recommend trying to request a sell order if the price rises in the short term.
Also, you would have to consider the transaction fee that you incur when you request for the sell order, which will eat into your returns.
If you are investing in a RSP, I would recommend you to hold it for the long term as the price will go up eventually.
Only when you require the money (such as retirement) then you can sell the stock and realise the capital gains.
Hi Anon,
Yes it is possible to profit off capital appreciation in a RSP.
You are able to request a sell order at anytime.
However, there may be a lag time between you requesting the order and the bank actually executing the order.
Take for example, the OCBC BCIP plan.
The terms and conditions states that "If a Customer’s Sale Instruction is received by OCBC Bank on or prior to the Cut-off Time, the Sale Instruction will be effected on the following Business Day (the “Sale Date”). If the Sale Instruction is received by OCBC Bank after the Cut-off Time, the Sale Date shall be two Business Days after the Sale Instruction is received by OCBC Bank."
So I wouldn't recommend trying to request a sell order if the price rises in the short term.
Also, you would have to consider the transaction fee that you incur when you request for the sell order, which will eat into your returns.
If you are investing in a RSP, I would recommend you to hold it for the long term as the price will go up eventually.
Only when you require the money (such as retirement) then you can sell the stock and realise the capital gains.