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Old 09-08-2013, 10:50 AM
 
Location: On The Road Full Time RVing
2,342 posts, read 3,211,745 times
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If I would buy ( xyz ) stock at $10.00 how much would it have to
increase, to make .01 penny profit if I sold it,
after I paid comision or fees for the sale.

Can anyone help me understand this.
.
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Old 09-08-2013, 10:52 AM
 
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depends what your commission fees are like. i pay 7 bucks a trade but i don't know what you would pay .
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Old 09-08-2013, 11:34 AM
 
Location: On The Road Full Time RVing
2,342 posts, read 3,211,745 times
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Quote:
Originally Posted by mathjak107 View Post
depends what your commission fees are like. i pay 7 bucks a trade but i don't know what you would pay .
I know that these are alot of Questions.

1. Are you saying then if you bought XYZ at $10.00 and sell
at $17.01 then you would clear .01 penny profit ?

2. But if XYZ went up from $10.00 to $23.67 and you sell - $7.00 commission fee
then your profit would be $6.67 above the $10.00 invested

3. Is there a fee up front when you buy or only when you sell?

4. If the stock falls and you sell at $5.50 you would still have to pay the $7.00 commission fee.
and would be $12.50 loss.

5. Is that $7.00 commission fee the same for one stock
as it would be if I sold a 100 XYZ stocks at once.

6. If I had 3 differen stocks 100 XYZ's and 100 TTA's and 100 WVU's and
sold them all at once would that make 3 different trades a $7.00
for each one totalling $21.00

.
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Old 09-08-2013, 11:56 AM
 
Location: The Pacific NW.
879 posts, read 1,861,856 times
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Typically, you pay a commission (say $7) every time you BUY XYZ or SELL XYZ, regardless of number of shares. Examples:

Buy one share of XYZ: $7 commission.
Buy 1000 shares of XYZ: still just a $7 commission.
Sell 500 shares of XYZ: $7 commission.
Sell the remaining 500 shares of XYZ (at another time): another $7 commission.

So obviously buying just one share is not worth it because, assuming a share price of $10, you'd need to make a 140% gain just to break even on the (buy & sell) commissions!

Some brokers charge PER SHARE rather than per order and those can be cheaper for small accounts, but typically they're also for more experienced traders. And there can be other negatives, as well.
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Old 09-08-2013, 04:44 PM
 
12,486 posts, read 17,368,194 times
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My commision is $7.95 for up to 1000 shares.
If buying a $10 stock like in your question, then with the commission to buy and sell, cost basis is $10.00 + $7.95 + $7.95 = $25.90.

If I bought a 100 shares of the $10 stock, I need it to go up to $10.16 to cover both commissions.
100 shares x price rise of 16 cents = $16.00 ($7.95 + $7.95)

With my broker if a buy order is partially filled and the rest of the order is filled the same day, the commission is $7.95. If I am trying to buy 50 shares at a limit price and I get filled on 25 shares at my limit, and I change the limit price to make sure I get the other 25, it's two commissions.

How many shares you intend to buy of the $10 stock is important.
If it is 1000 shares, then a 2 cent rise is $20 and covers the commissions easily.
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