We can answer this question best if you visit LHV Bank for a free consultation either in our Tallinn office (Tartu mnt. 2) or Tartu office (Ülikooli 2a). We will find the best way to make your money grow if we work together.
You can short a limited number of US stocks. The list is constantly changing and even during one day it might happen that a share found in the list cannot actually be sold short Shortable stocks search
Pre-market trading begins with LHV 5h30m earlier than regular trading (generally US pre-market starts at 11:00 and regular trading at 16:30). You can use only day limit orders on the pre-market. Pre-market orders will be active until the end of regular trading and after that they will be cancelled. Those orders will not participate in after-market trading.
Pre-market trading involves a higher risk than regular trading. Please read about additional risks.
When buying funds you have to know whether this fund is tradable or not.
An exchange-traded fund (ETF) is an investment fund traded on stock exchanges, much like stocks. To trade it, you must go to the Securities buy-sell section.
If You want to buy or sell mutual funds go to GROWING OF FINANCES menu and select Fund units buy/sell. Fund Manager will calculate the price for your fund trade on the evening of your trade date therefore the exact trade price will be inserted into your Internet Bank on the next banking day.
If you want to buy or sell options then go to GROWING OF FINANCES menu and select Options buy/sell or choose the option you want to sell under the Summary statement and click press sell.
The second way to end an option is to exercise it. In order to exercise an option select exercise next to the option you want to exercise or go to Option exercise under GROWING OF FINANCES.
Market orders are used when certainty of execution is a priority over price of execution. This order type does not allow any control over the price received and your order will receive a price once it is executed. The order will be executed in full and you can access it under Pending transactions. An order which is submitted less than one hour before the market close may be executed on the next trading day. Once the order is executed, it is visible under Securities transactions.
N.B. The execution of a market order differs slightly on Baltic exchanges. In order to execute the order, 10% more money is reserved and the largest possible amount will be executed at the best possible price. The remaining part of the order will be cancelled regardless of the fact that it would have been possible to continue the execution with a less favorable price.
Stop Loss (maximum loss) is designed to limit an investor's loss on a security position, once the set level is reached, the security will be sold. N.B. When the specified stop price is reached, the stop order is entered as a market order. This means the trade will be executed, but not necessarily at or near the stop price. A stop loss order can be used when trading US shares and options.
Limit orders are used when you wish to buy a security for less, or sell for more, than the market price. The order might, however, never be fully executed, if the market price does not match the limit order price. N.B. A buy limit order can only be below the market price and a sell limit order above the market price, otherwise the orders are executed at market price. If it has not been possible to execute the order during the set timeframe, the order will be automatically cancelled and the money will be transferred back to your account in the currency the order was supposed to be settled in.
An EVK account is an account opened with the Estonian Central Securities Depository for holding Baltic securities.
You can view your EVK account number by selecting INFORMATION AND SETTINGS, then Contracts.
You can trade during regular trading hours. If exchanges are closed your order will be processed at the beginning of the next trading session. You can check trading hours here: www.worldtimezone.com
Currency is converted automatically at the moment a limit order is entered and when it expires or is cancelled, the money is repaid in the currency in which the order was entered, as it is not automatically converted back to the initial currency.
The money settles in the account in one to six days after you have sold the securities, depending on the exact fund or the market the securities are traded on. Detailed information can be found here. After the stated time has passed, the money can be transferred from the account. Before the settlement the money can only be used to buy new securities.
|Fund manager||Transaction orders deadline||Transaction price confirmation||Transactions value time|
|East Capital Assets Management|
|Buy||T (1) 11:30||T+3 13:00||T+3|
|Sale||T 11:30||T+1 15:00||T+2|
|JPMorgan Asset Management|
|Buy||T 13:00||T+1 13:00||T+3|
|Sale||T 13:00||T+1 13:00||T+3|
|SEF - LHV Persian Gulf Fund (fund closed on Friday)|
|Buy||T 14:30||T+1 14:00||T+1|
|Sale||T 14:30||T+1 14:00||T+3|
|AS Trigon Funds|
|Buy||T 10:30||T+1 15:00||T+1|
|Sale||T 10:30||T+1 15:00||T+3|
|Buy||T 15:00||T+1 15:00||T+1|
|Sale||T 15:00||T+1 15:00||T+3|
|SEB Asset Management S.A|
|Buy||T 13:30||T+3 16:00||T+3|
|Sale||T 13:30||T+3 16:00||T+3|
|AS SEB Varahaldus|
|Buy||T 15:00||T+1 16:00||T+1|
|Sale||T 15:00||T+1 16:00||T+3|
|Avaron Asset Management|
|Buy||T 10:30||T+1 16:00||T+1|
|Sale||T 10:30||T+1 16:00||T+3|
|Buy||T 15:00||T+1 14:00||T+1|
|Sale||T 15:00||T+1 14:00||T+3|
(1) T - Trade date
|Other securities deadlines||Value date|
|Stocks (all other than European)||T+3|
Account position and balance are different views of the account. Account position is the default view of a portfolio.
Account position means that a price has been given to purchased securities and their status is ‘Pending', but they are not in your account yet. You can sell the shares that are in your position, but you have to wait until the actual transaction is completed before you can transfer money from the account. The transaction is usually completed on day T+3 if you entered the share order on day T.
Click on account balance in the Portfolio overview and you will see all of your assets that have been settled, i.e. 3 days have passed from a share transaction and 1 day has passed from an option transaction. Account balance is particularly important when you want to transfer money, as you can see when the money (or securities) was received in the account. LHV allows its clients to immediately perform a new transaction with the money raised from the sale of shares (otherwise you would have to wait for T+3 days before you can perform a new transaction), which means that keeping an eye on the account position is more important when trading.
You can see pending orders by selecting GROWING OF FINANCES and Pending orders. Pending orders can also be cancelled there by pressing the cancel button next to the corresponding order.
There are three ways to transfer securities to your account in LHV Bank:
- By changing your account manager
- As a free of payment transfer (FOP)
- As a delivery versus payment (DVP).
The easiest way is to make a free of payment transfer: start an order in the Internet Bank by entering the security’s name (or its ISIN), its quantity and the price you wish to use for the transfer. Then enter the name, securities account number and account manager of the counterparty.
Please note: Make sure you send the transfer order also to the bank that is the counterparty's account manager when you transfer securities without payment. The transaction order must be identical to the counterparty's transaction.
Please visit our office or contact our client support if you would like to change your account manager or make a delivery versus payment.
The maximum amount depends on the market value of the collateral held in your account and the general limits determined by LHV Bank. At the moment, you can borrow up to 100,000 (one hundred thousand) euros, or its equivalent in a foreign currency, through our Internet Bank without LHV Bank’s additional approval.
The value of the collateral is calculated by multiplying the market value of securities and currency held in your account by the collateral rate. View the list here.
The sufficiency of the collateral can be observed under Summary statement at ASSETS AND LIABILITIES.
Margin is repaid automatically. Every amount received in your account reduces the amount of margin used whilst margin always remains available to you to the extent of the available own funds. If you used the margin in one currency and transferred another currency to your account, you have to convert the currency yourself in order to repay the margin, as there is no automatic conversion. You have to pay interest only for the days when you used the margin.
Interest is withdrawn from your account on the 5th day of every month.
When you want to buy or sell bonds, select “Bonds buy/sell” under INVESTING, then choose the desired bond from the drop-down menu, enter the amount, price and the term of validity of the order.
When entering the price it is important to note that clean price is used. Clean price means that in the transaction the accrued interest is added to it and the final market price is the sum of the clean price and the accrued interest.
Clean price + accrued interest = dirty price
Clean price is the price of a bond without the accrued interest.
Dirty price is the price of a bond with the accrued interest.
Accrued interest is the interest accumulated in the period since the bond’s last interest payment.
When submitting the order, first the clean price is reserved on the account along with the transaction fee. When the order is executed, then the dirty price, which includes the accrued interest and transaction fee, is entered for the order.
Starting from 1 July 2016, it will no longer be possible to make external payments in USD through LHV Pank. The change will not affect securities trading and investing. You will be able to buy or sell securities listed in US dollars as usual; dividends will continue to be deposited into your account in USD. There will be no changes in currency exchange.