Board Lot Table
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| pse.com.ph |
Here's a reference table for you when you will be trading in the market, no need to memorize but just your guide when buying and selling shares.
When making an order in the market regardless if it is a "buy" or a "sell" order you will be given two options to choose from, the "MAIN Lot*" and the "ODD Lot".
*Lot size is the total number of shares you are allowed to buy or sell in the market under MAIN lot.
As starters I encourage you to always use the MAIN lot when setting up your orders, the ODD lot will only be handy when you will be receiving some "stock dividends" that does not fall from the lot size described from table above.
UNDERSTANDING THE TABLE
The table tells you that when a certain stock is ranging at a market price of ₱100-₱199.9 you are only allowed to set your orders to multiples of 10.
Let us set an example of stock Jollibee
Stock Code: JFC
Current Market Price: ₱138.00
Lot size: 10
Tick Size: 0.10
So you are allowed to buy shares of 10, 20, 30, 500, 1000 and so on (multiples of 10), thus, setting an orders of 21, 45, 99 are not allowed on the MAIN lot and your orders will be rejected.
Not to worry as most brokers will give you all the info you need in terms of Board lot allowed like from this example below.
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| COL_Financial_platform |
TICK SIZE
This is the increment or allowed price fluctuation of each stock depending on what price range it may fall into in reference to the table.
Going back to our JFC sample the tick size is 0.10 so you are only allowed to set a BID order price of ₱137.90, ₱136.10 etc or a SELL (ASK) price of ₱140.1, ₱141.90 etc.
Your order will be rejected if you set an order like ₱137.65, ₱136.25 etc since it does not fall from the given tick size of ₱0.10 as per table.
Hope that is clear enough and you won't be confused if you get an error by checking from the table yourself what went wrong that your order got rejected.
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