New to Globalise
- How do I open my account?
- How long does it take to open my account?
- How soon can I start investing?
- What are the documents required for opening an account with Globalise?
- Is there a minimum amount that I need to invest?
- Which stock markets are available on Globalise?
- How many securities are available on Globalise?
- How do I buy or sell securities?
Regulations & global investing
- Can investors from India invest in the US?
- What is the LRS?
- How much can I invest in the US?
- Can I invest in US mutual funds and ETFs?
- Can I buy derivatives or leveraged products through my Globalise account?
- How do fractional shares work?
- Do I get dividends and voting rights on fractional stocks?
- Is there a limit on maximum number of foreign securities to be held by an Indian Resident?
Funds Transfer & Trading
- How do I add money to my Globalise account?
- What documents do I need to transfer money out of India?
- How do I withdraw money back to my account?
- How is the forex rate and fee determined?
- Does Globalise provide any research support?
- Does Globalise give investing advice?
- What is a limit order?
- When to use limit order?
- What's a market order?
- What is a stop order?
Pricing and Charges
Safety and Security
- How secure is this?
- Where is my US investing account held?
- Who is the custodian of my account?
- What happens if Globalise goes down? What is the safety-net on my account?
- What is the insurance or protection on my account?
- Who owns the securities I have invested in?
- How can I verify ownership of my shares?
- As a Globalise customer investing in the US, where do I pay my taxes?
- How are my gains and earnings in the US markets taxed?
- What is the tax rate applied in India for my US investments?
- What exchange rate I should consider while filing my tax return?
- While calculating short-term and long-term capital gains, does the timing of 'withdrawal' to India matter?
- Which is the tax document that needs to be filed in India for reporting tax already paid in the US (for dividends)?
- Is there a tax on remittances from India?
- What reports am I required to file in India on my holdings or gains on foreign assets?
- What are the tax implications in India if I am a Non-Resident Indian (NRI) residing in any country other than USA?
- Can brokerage and other charges paid be claimed as a deduction for computing my capital gains tax in India?
What is a stop order?
A Stop Order is used to buy/sell at a price above or below the current price. A stop order has two steps to be executed, which are: • Trigger- the security’s price trades at or through the stop price, triggering/activating the order; and then • Execution- the stop order becomes a market order and is executed at the next available price, completing the trade. Stop Buy Orders A Stop Buy Order can be used to establish a new long position. Entered above the current market price, (referred to as a ‘stop buy entry order’) once the price is touched the order becomes a market order and is executed at the next best price. Example: A customer may think that if shares of XYZ trade above the 52-week high of $32, they are likely to continue moving higher, but while the price is just below that level, the customer does not wish to buy. The customer could leave a stop buy order at $32.75, which if triggered means the 52-week high has been broken, and the customer would have entered a long position in anticipation of higher prices. Stop Sell Orders A stop sell order can be placed below the current price to limit losses on an open long position, or to protect gains on a profitable long position, frequently referred to as a ‘stop loss sell order’ in other markets. Example: Stop Sell Order (to stem losses) A customer is long 100 shares of XYZ at $32, and the stock is now at $29 and the customer is concerned it will fall further, so he places a stop sell order at $27 to prevent additional losses. If the price trades at or below $27, the stop sell order will be triggered and the long position will be closed. Example: Stop Sell Order (to protect gains) A customer is long 100 shares of XYZ at $32, and the stock is now at $41. The customer would like to hang on for more gains but is concerned the stock will reverse and begin to fall, eroding some of the unrealized profit. To deal with this, the customer could place the following order: sell 100 XYZ $40 stop. If the stock does start to head south, once it trades at or through the stop price of $40, the order becomes a market order to sell 100 XYZ and the long position is closed. ***Note: The entry of Stop Orders is available 24/7. However, Stop Orders will only be executed during the normal NYSE market hours (9:30 AM to 4:00PM Eastern Time Monday through Friday). There is no guarantee that if a stop order is triggered, the investor will pay or receive the stop price. Execution is usually certain, but price is not. In most cases, your order will be executed at a price that is close to the market price at the time the sell stop order is triggered. However, as an example, if a stock’s trading is halted and the stock price gaps down upon reopen (lower than the price at the time trading was halted), your execution price could be significantly lower than your sell stop price.