Expatlifeindonesia.com, JAKARTA – As with other regular markets, the stock cash market has the same access and methods. The difference is in terms of the payment system.
Stocks in the Cash Market are usually traded in lots, and the transaction settlement mechanism is quite limited.
Indonesian Stock Cash Market
Stocks are now one of the most popular types of investment, but before entering the world of stocks, there are types of markets should be known, those are the three types of markets and their details.
In the Indonesia Stock Exchange, there are three types of stock markets, namely the Regular, Negotiated, and Cash Markets.
Shares traded in the Cash Market are traded in lots containing 100 shares. This market uses a transaction mechanism with the standard T+0. This means that the transaction settlement will end during the session on the same day. That’s why this market is called cash.
Cash Market Negotiation Flow
The cash market negotiation process has the same mechanism as the regular market. If a member of the Exchange fails to fulfill its obligations in the Regular and Negotiated Markets, then the Cash Market is available to settle them. The entire bargaining process in the Cash and Regular Markets takes place on the Indonesia Stock Exchange.
Furthermore, the price in the stock market is formed from bargaining that occurs continuously in accordance with market forces. The implementation of Cash Market trading begins with the Pre-opening stage.
All members of the Indonesia Stock Exchange can submit bids and buy requests following several provisions, which include trading units, prices (fractions), and auto rejection.
The formation of the opening price will be based on the accumulation of the largest number of buying and selling offers. Furthermore, JATS NEXT-G will place it at a certain price during the Pre-opening period.
After that, all requests and offers will be processed in session I, except for those whose selling and buying offer prices exceed the auto rejection limit. Furthermore, the limit of the highest or lowest bid price in the Regular Market and Cash will be determined at the close of the previous day in the Regular Market.
Transaction Fees on the Indonesia Stock Exchange.
Exchange members are also required to pay transaction fees, KPEI, and KSEI. Here are the details for the stock Cash Market.
IDX Transaction Fee : 0.018%.
KPEI Clearing Fee : 0.009%.
KSEI Settlement Fee : 0.003%.
KPEI Guarantee Fund : 0.010%.
VAT 10% : 0.003%.
Final PPh 0.1% (Only for Selling Transactions): 0.1%.
The total of these fees is 0.143% for selling and 0.043% for buying which users can pay as mandatory collections by applicable regulations.
Cash Market Exchange Operating Hours.
The Stock Cash Market has the same systematic opening hours as the Regular Market, which is 09.00 to 12.00 for Monday – Thursday. But the market will close earlier on Friday, which is 11:30.
