Investing in Australian Securities Exchange (ASX) shares can be both exhilarating and profitable, particularly for those who engage in intra-day trading. Tiger Brokers, one of excellent Australia’s stock brokerage firms, offers a robust platform tailored for dynamic trading activities including intra-day trading. However, for those looking to explore more aggressive strategies like short-selling, it’s important to note the current limitations within the platform. This blog provides a comprehensive guide on how to effectively utilize Tiger Brokers for intra-day trading and addresses common questions about the services available for Australian stocks.
Intra-Day Trading with Tiger Brokers
Intra-day trading involves buying and selling shares within the same trading day. Traders capitalize on small price movements and avoid the risk of significant overnight price changes. Here’s how you can make the most of Tiger Brokers’ features for intra-day trading:
1.Leveraging Real-Time Data
Tiger Brokers provides updated market data that is vital for intra-day traders who need to make quick and informed decisions. This data includes price fluctuations, market trends, and volume insights, allowing traders to spot opportunities as they arise throughout the trading day.
2.Effective Use of Trading Tools
Utilize Tiger Brokers’ comprehensive set of trading tools like heat maps, active and hot stock lists, and sector performance analyses. These tools help identify which stocks are experiencing significant intra-day movements and which sectors are outperforming or underperforming, providing critical inputs for timely decisions.
3.Understanding Market Hours
The ASX operates from 10:00 AM to 4:00 PM Sydney time, and keeping track of these hours is crucial for intra-day trading. Plan your trading activities to capitalize on typical high-volume periods such as the market opening or closing hours when price volatility is higher.
Addressing Short-Selling
Currently, Tiger Brokers does not offer short-selling for Australian stocks. Short-selling is a strategy used by traders who anticipate a stock’s price will decline, allowing them to sell borrowed stocks and buy them back at a lower price. Although this can be a profitable approach, it involves higher risks and complexities.
Alternatives to Short-Selling
Since short-selling is not available, intra-day traders at Tiger Brokers can explore other strategies such as:
– Long Positions: Focus on buying stocks that are expected to rise within the day and selling them for a profit before the market closes.
– Pairs Trading: This strategy involves taking opposing positions in two correlated stocks. If short-selling is not an option, traders can still buy the undervalued stock and avoid the overvalued one, capitalizing on the expected divergence in their price movements.
Getting Started with Tiger Brokers
For those new to Tiger Brokers or intra-day trading, here’s how to get started:
- Account Setup: Register and verify your account with Tiger Brokers, ensuring you meet all regulatory requirements.
- Fund Your Account: Transfer funds to meet the minimum transaction thresholds and to support your trading activities.
- Educational Resources: Utilize Tiger Brokers’ educational tools and resources to better understand intra-day trading strategies and market dynamics.
- Practice: Consider using a demo account if available, to practice your trading strategies without financial risk.
Conclusion
Tiger Brokers offers a powerful platform for traders interested in intra-day trading of ASX shares, equipped with updated data and essential trading tools. While the current unavailability of short-selling might seem limiting, there are numerous other strategies that traders can employ to exploit market opportunities. By understanding and leveraging the strengths of Tiger Brokers, traders can effectively navigate the complexities of intra-day trading and potentially achieve significant returns.
