The Taiwan Stock Exchange (TWSE) has changed its rules to allow day trading to take place for 200 stocks.
The stocks are listed on the TWSE Taiwan 50 index, Taiwan Mid-Cap 100 index and GTSM Gretai 50 index. The new arrangements will begin on 30 June 2014.
Traders may purchase or sell the same type and quantity of stocks during the day’s general trading session.
They can also hold a long security position during the general trading session and sell in the after-hours fixed-price trading session. Traders can also undertake the reverse trade, namely, holding a short security position during general trading session and purchasing in the after-hours fixed-price trading session.
The TWSE has detailed exact trading rules for how this has to be accomplished, such as the maximum limit per investor, which is based on their inventory of deposited securities and their total stocks purchased for cash. TWSE also sets out the procedures if trades cannot be completed within the day’s sessions.