To buy a stock:
To sell a stock (Close an existing position):
Short selling is like buying and selling a stock, but in reverse. You sell a stock you do not own hoping to buy it back at a lower price later, and the difference is your profit. While investors go long in expectation that the stock will appreciate in price, traders go short in anticipation that the stock price will decrease.
Selling short requires a margin account with an account value of at least $2000.
Let’s assume you short 100 shares of hypothetical stock ABC at $10 per share; after a period of time, the stock has declined to $5, at which point you buy it back. Your net profit on this short sale is thus $500 ([$10 – $5] x 100 shares).
To Sell Short:
Supported Order Types
Folionet supports market orders, limit orders, stop orders, and stop limit orders.
A market order is an order to trade a stock at the current market price. It does not contain restrictions on the price or the time frame in which the order can be executed.
A limit order is an order to either buy or sell a stock at a designated price or better. A buy limit order can only be executed at the limit price or lower, and a sell limit order can only be executed at the limit price or higher. A limit order is not guaranteed to execute.
A stop order is an order to buy or sell only after a designated price level (the “stop level”) has been reached. If a stock moves down and a designated price is reached, stop orders help to minimize losses by closing the position at the market price. Even though stop orders are commonly used when selling securities, stop orders can be used to buy stocks. Buy stop orders are used to purchase stocks above a designated price where the investor thinks the stock price will rise.
Stop Limit Order:
A stop-limit order is an order to buy or sell a stock at a designated limit price, once the security has traded through a designated stop price. This type of order has two components: the stop price and the limit price, usually the stop price is set above the limit price, in order to increase the chances of execution.
How to select different order types?
A day order is an order to buy or sell a security that expires at the end of the trading day, when the market closes. If the order is not executed on the day it was placed, the order expires.
It is an order to buy or sell a stock until the order is filled or the investor cancels it.
*Please note: If your GTC order doesn’t execute within 90 days, it’ll be canceled automatically. You can place the limit order again if you wanted to.
How to select Order Duration?
What is a stock settlement?
Stock settlement refers to the completion of a trade through the delivery of the security and the payment of cash. The settlement time (usually T+2 or two business days after the trade date) is the date on which ownership changes between buyer and seller.
What is an instant settlement?
If you have a Folionet margin account, with an account value of $2000, you have instant access to funds and proceeds from stock transactions. This means that if you sell a stock today you don’t have to wait for the usual (T+2 or two business days) to access those funds.
What is the buying power?
The buying power is the amount of fully margined securities, that a margin client may use to purchase stocks, using only cash, securities, and special memorandum account balance and without depositing additional equity.
To find additional information go to:
What is Margin Security?
Is a security that is eligible for purchase on margin. A firm is permitted to lend money to help customers purchase these securities and may accept these securities as collateral for margin purchases.
What is a Margin Call?
The Federal Reserve Board’s demand that a customer deposits a specific amount of money or securities when a purchase is made in a margin account; the amount is expressed as a percentage of the market value of the securities at the time of purchase. The deposit must be made within one payment period.
What is a Margin Maintenance Call?
A demand that a margin customer deposit money or securities when the customer’s equity falls below the margin maintenance requirement set by the broker/dealer.
What is the Margin Maintenance Requirement?
Is the minimum equity that must be held in a margin account, determined by the broker/dealer. The amount of equity required varies with the type of security bought on margin, and the broker-dealer house requirement.
How Folionet calculate the cost basis?
The cost basis is the price paid for a stock, used to calculate capital gains or losses when the asset is sold. We use the “First in, First Out” in which it is assumed that the first goods acquired are the first to be sold.
You can watch your average cost basis in the positions display by tapping on each security.
Why my bank deposit is not available right away?
The deposit time frame is between 4-5 business days because we need to be certain that the funds posted in your account are not returned to the bank. This could happen for the following reasons
What is a Day Trader?
A day trader is one who buys and sells the same security on the same day to try to take advantage of intraday price movements.
What is a Pattern Day Trader?
A day trader is one who executes four (4) or more day trades in a five (5) business day period.
The minimum equity requirement for a pattern day traders is $25,000; pattern day traders must have on deposit at least $25,000 on any day on which day trading occurs. The minimum maintenance margin requirement for pattern day traders is 25%, the same as for regular customers.
Placing four (4) day trades on a five (5) business day period will restrict your account from placing further day trades for 90 days. This limit applies only to margin accounts, as cash accounts are not suited for pattern day traders.
For more information about Pattern Day Trading, please visit:
We’d love to hear from you!
We’ll do our best to reply as quickly as possible