You can submit an order for the purchase or sale of shares (as well as ADRs/GDRs and ETFs) through the online bank under Investments > New order > Order for the purchase or sale of shares.
The order must include the security’s details and transaction terms.
- Type of operation: purchase or sale.
- Number of shares: you must indicate the specific number of shares (whole number) or ETF shares you wish to purchase or sell.
- The name of the share issuer: the company (or, for ETFs, fund) name (for example, Apple Inc. or Latvijas Gāze AS).
- The share symbol: the short symbol under which the security is traded at the stock exchange (for example, AAPL, GZE1R).
- The ISIN code: the unique code for the security (for example, for Apple Inc. this would be US0378331005) .
- Order type. There are several different order types, but not every exchange supports them all. The simplest and most frequently used are Market and Limit, where:
- MKT – Market is a market order where the transaction is processed at the market price registered at the exchange at the moment of submitting the order;
- LMT - Limit is a price-limiting order. You can purchase or sell the security at the price specified or higher (but not lower), if possible and if the market has reached this price.
- The order’s time limit. A Market order (MKT) is a one-day order. Meanwhile, delayed orders (Limit, Stop and others) have a choice:
- Day – a day order will apply for one trading session;
- GTC (good til cancel, valid until completion or cancellation) – the order can remain active for an unlimited amount of time until the market reaches the specified order sum and the order is completed, or until the uncompleted order is cancelled by you.
The most important things to know about ETFs
Some Exchange Traded Funds (ETFs) are classified as complex financial instruments. This means that:
- Before completing the transaction, we must test your experience and knowledge of complex financial instruments.
- In accordance with current legislation (Regulation EU No. 1286/2014 (PRIIPs)) private EU customers must read a standardised Key Information Document (KID) before purchasing ETFs.
- Before the transaction, our brokers will submit the relevant KID, and in an order (eg. under Information for the Bank) you must confirm that you have read it and that you understand the language it is written in.
Important! Those managing ETFs traded on the U.S. market do not prepare or publish these KIDs. Therefore, private EU customers are unable to purchase ETFs traded on the US exchanges.
Why is it important to include so much information?
We need to receive a very clear order from you. One different letter in the share symbol may mean a share from a completely different company. The shares of one company could be traded in different countries, exchanges and currencies, so this can significantly impact your order completion, transaction costs and financial results.