Can I protect the shares in my CommSec Margin Loan from losses?
You can use a number of strategies to reduce the risk on your portfolio, such as diversifying, having an investment plan and regularly monitoring your loan to ensure the gearing ratio stays at your preferred levels.
Through CommSec, you can also use the following tools to help protect and manage your portfolio in a falling market:
Share Alerts
Keep yourself informed by taking advantage of our FREE Share Alerts via the CommSec app or email. To learn more about CommSec's Share Alerts navigate to Watchlist > Alerts.
Conditional Orders
Through conditional trading you can place a falling sell order, also known as a ‘stop loss’, which automatically places a sell order in the market when the share price reaches your pre-defined target. To explore the full range of Conditional Order types available, and to enable them on your account, go to Portfolio > Offers & Apply.
Put Options
Buying a "Protective Put" is a strategy that allows investors to protect their shares against a falling market. Buying a Put can limit or fully offset your share losses if the market was to fall – while allowing you to keep your holdings and avoid the tax implications from a potential sale. It also allows you to take part in the potential profits if the market moves higher. To find out more about Options, visit here.
Please consider the ETO Product Disclosure Statement (PDS) issued by CommSec available from commsec.com.au before making any decision about ETOs. This information has been prepared without taking account of the objectives, financial situation or needs of any particular individual. For this reason, any individual should, before acting on the information, consider the appropriateness of the information, having regard to the individual's objectives, financial situation and needs and, if necessary, seek appropriate professional advice. Conditional Orders are subject to the CommSec Trading Terms and Conditions available upon request, fees and changes apply.
