INTERNET BASED TRADING IN BANGLADESH

Chittagong stock exchange started internet based trading facility (internet trading system, ITS) in June-2004. But Dhaka stock exchange did not yet, now it is 6-2-2010. How funny!

Why there is two (yes, 2) stock exchanges in a small country like Bangladesh? Any one should be deleted, or both should be merged.

Anyway, CSE's system looks better than DSE' one. I am talking about intranet trading module. Also see, cse's ticker-names are shorter, that is similar to international markets. Main problem is 'total trade volume' is too small in cse. If they advertise their ITS properly, this volume will increase surely.

ITS is so simple and light-wight. A weak computer can handle it smoothly. A very slow net-connection is enough for it. This is my personal experience. I like this thing. After all, it is Bangladesh. We have no actual broadband, rather we have 'fraud band'. Mobile phone based internet is most popular so far. Govt is still so mean to spread internet (sorry, this is a digital country. I should not talk like this).

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Address of CSE-ITS: http://www.bangladeshstockmarket.com/

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Procedure:
1. Find out a good broker who provides ITS. Brokers' list is available in the site.

2. contact them via email. if they send reply and shows interest, you can open a BO account in that house. Before opening, collect information, how many ITS-clients are trading in that house. Unfortunately most of the brokers are not providing ITS, though they have registration for it.

3. When your account is ready, collect your BO id and internal DP id. Collect the ''broker-code'' and ''sub-broker-code'' of your broker which will be used in the registration form.


4. go to the web site and open the page of registration as a new user. Fill up the form, it's easy. Submit. Your broker will accept your ITS-account. You are ready now. Don't forget your password. You have 2 passwords, one is for browsing another is for trading. I made both same.

5. now, you can deposit money to your broker for trades.

6. go to the website, log in, submit orders, modify them anytime, delete them anytime. see current buy-sell offers with corresponding volumes. You can submit orders even at off-time. these offline orders will hit the market on the next trading hour automatically.

Note: You can modify/delete an 'offline order' during off-time, but you can not modify / delete a 'submitted order' during off time. During trade hours, you can do everything. (your computer > intermediary server > trading server. This 'trading server' remains 'off' during off-time).

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Buy-sell limits:
buy limit will be set by your broker in the morning everyday, before trade hour. Remember, your buy-orders will exhaust the limit, whether executed or not.

sell-limit is the 'matured stock list'. your broker will set it everyday before trade hour. No risk of short-sale.

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Order validity period:
3 options, GFD, GTD, GTC.

GFD or 'good for day' means your order will die when this session ends. Valid only for this day only.

GTD or 'good till date' means your order will remain active till a given period. you have to set the number of days, like 2 days or 3 days etc. There should be a date option, like 'valid till 09-February-2010'. Actually I remain in the darkness, how long my order is valid.

GTC or 'good till cancel' means your order will remain active until you delete or modify. but not more than one week. Here is a problem, probably this type of orders die at 10:59 am on the next Sunday. Before that moment, you will see them as submitted (=pending) orders. Actually I remain in the darkness, how long my order is valid.

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Problems of ITS: (will be discussed later...)

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