Can I protect the shares in my CommSec Margin Loan from losses?

You can use a number of strategies to reduce the risk on your portfolio, such as diversifying, having an investment plan and regularly monitoring your loan to ensure the gearing ratio stays at your preferred levels.

Through CommSec, you can also use the following tools to help protect and manage your portfolio in a falling market:

Share Alerts
Keep yourself informed by taking advantage of our free Share Alerts via the CommSec app or email. To learn more about CommSec's Share Alerts navigate to Watchlist > Alerts.

Conditional Orders
Through conditional trading you can place a falling sell order, also known as a ‘stop loss’, which automatically places a sell order in the market when the share price reaches your pre-defined target. To explore the full range of Conditional Order types available, and to enable them on your account, go to Portfolio > Offers & Apply.

Put Options
Buying a "Protective Put" is a strategy that allows investors to protect their shares against a falling market. Buying a Put can limit or fully offset your share losses if the market was to fall – while allowing you to keep your holdings and avoid the tax implications* from a potential sale. It also allows you to take part in the potential profits if the market moves higher.

Learn more about Exchange Traded Options.


*CommSec does not provide tax advice. Customers should always speak to their accountant or the ATO for tax guidance and advice.

Please consider the ETO Product Disclosure Statement (PDS) issued by CommSec available from commsec.com.au before making any decision about ETOs. Conditional Orders are subject to the CommSec Trading Terms and Conditions. Fees and changes apply.

 

© Commonwealth Securities Limited ABN 60 067 254 399 AFSL 238814 (CommSec) is a wholly owned but non-guaranteed subsidiary of the Commonwealth Bank of Australia ABN 48 123 123 124 AFSL 234945. CommSec is a Market Participant of ASX Limited and Cboe Australia Pty Limited, a Clearing Participant of ASX Clear Pty Limited and a Settlement Participant of ASX Settlement Pty Limited.

The information on this page has been prepared without taking into account your objectives, financial situation or needs. For this reason, any individual should, before acting on this information, consider the appropriateness of the information, having regards to their objectives, financial situation or needs, and, if necessary, seek appropriate professional advice.

CommSec does not give any representation or warranty as to the accuracy, reliability or completeness of any content on this page, including any third party sourced data, nor does it accept liability for any errors or omissions.

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