Asked by Anonymous
I saw this on my DBS Vickers and got confused.
Here is the difference between the two!
Basically a Sell order is a simple one where you simply sell stocks which you currently own in your CDP account or custodian account.
Sell Contra Order
Contra is the 3 days period where you can owe your broker for the stocks you brought. After the 3 days, if you have not sold your stocks, you must pay your broker.
Contra trading is to buy and sell the stocks within the 3 days and make money from the differences. Essentially, you are trading without putting your own money. However, if you loss, you have to pay the differences.
Sell contra could means that you've sold stocks that you don't own and you've 3 days to buy back the stocks to cover your position.
In Singapore, it's illegal to naked short, sell first and buy back later. So if you've not bought back the stocks today, your broker should call you tomorrow to ask you to buy back. (naked shorting)
After 3 days, if you didn't buy back, the fine is $1,000 per day. So you better close this asap.
PS: You have to confirm with your broker regarding your position before doing anything, as the Sell Contra could be due to DBS Vickers didn't have the record of your stocks in your CDP account.
Add on to Kenneth reply.
Please be very careful of contra trading (buy or sell). You can make money without putting in any capital but there are dangers.
If the stock gets suspended or halted for more than T+3 for any reason, you will NOT be able to close your contra position within T+3. This will require you to put up the capital if you Contra Buy to make it into a normal Buy.
OR if you did contra sell without owning the stocks, and it get suspended/halted, you will be fined big time because there will be no buy in since it is suspended or halted from any trading.