The first step in investing is to understand the trading rules. Let's take a look at the common trading rules on the Australian Securities Exchange (ASX).

1. What's the trading time on ASX?

The market opens at 10 AM and closes at 4 PM (Sydney time) on business days. This time period is called the "normal trading", when most trades take place.

In addition to the normal trading, there are several other phases, including the pre-open, the open, the normal trading, the Pre CSPA and the Closing Single Price Auction. You can view the full list of ASX market phases here on the ASX website.

2. Is there a limit on the stock price?

Securities traded on the Australian market do not have price limits. A stock may rise 20% or more in a day, or it may fall 20% or more in a day. Investors need to manage risks based on their situation.

3. What is the trading model?

The Australian market adopts the intraday trading mode. The stocks or options bought on the same day can be sold on the same day.

4. What is the minimum number of trading shares? And what's the smallest price change?

The minimum number of shares traded on ASX is 1 share, and the smallest unit of price change is determined by the stock's price range. Details are as follows:

5. How are securities settled?

The settlement cycle for Australian shares is T+2. This means the settlement of securities occurs two business days after the order date (T). T+2 marks the official transfer of securities to buyers' accounts and cash to sellers' accounts by brokers and clearing institutions. The cash earned from selling the shares can only be withdrawn after the settlement.