Execution Price?

[clylbw]

Hi,

If I use EOD data and order to bur or sell a share, what execution price will I get? Do I have wait for the next day and have the price at that time?

It is said that ordinary brokers in the UK do not easily allow their clients to short shares. If that is the case, what can I do for shorting? Use CFDs?

Sorry for such silly questions, but, as a beginner, hopefully I can be forgiven for asking them. Thanks a lot.

 

[The Beyonder]

Hi clylbw,

Don't be shy about the question, we're all beginners at some point.

In a nutshell, the closing price on one day may or may not change for the following day's open, it depends on how maketmakers (and subsequently brokers) deem the impact of any events that happened during out-of-mkt hours, in extreme cases these would be eg. profit warnings, broker upgrades. But they could move the prices of all sorts of reasons.
Also, quite often share spreads are much wider in the first 15 mins or so in the morning.
As a result if you place an order out of hours, you may get a shock at the price it's executed at. As a failsafe, you can put a limit order, eg. do not buy at greater than a certain price.

As for shorting you can use CFDs or Spreadbetting.

There's a whole thread on their differences: http://www.trade2win.co.uk/boards/showthread.php?s=&threadid=5285&highlight=Spreadbetting+v+CFD

Hope this helps