Every time you buy or sell a stock, you’ll be asked to enter the number of shares and price you’re willing to trade for it.
Let’s say you want to invest in Semirara Mining and Power Corp. (SCC). The number of shares you can buy will mainly depend on two things – the amount of money you can afford to invest and the stock’s market price.
For example, if you have P10,000 to invest and SCC’s market price is P30.25 a share, then you should be able to buy 330 shares (divide P10,000 by P30.25/sh).
Take note, I’ve excluded the trading fees to simplify the calculation.
But if you simply put 330 and 30.25 in the number of shares and price details respectively, your order request won’t be accepted. You’ll get an error message saying “Invalid Board Lot Size. Number of Shares must be multiple of 100.”
In that case, let’s change the number of shares to 300 instead of 330 to make it in multiple of 100 and that should fix the problem.
Now, what if you decide to buy it at a lower price point, thinking the stock would go down and that you might be able to get a better entry price.
If you’re not aware, you can actually set your own buy or sell price in the market – a price that you’re willing to trade for a particular stock which could be higher or lower than its current market price.
So, let’s try 30.23 instead of 30.25 and see what happens.
Again, there’s the error. But this time, it’s saying “Invalid Price Lot size. Price must be multiple of 0.05.” To fix that, simply put it back to 30.25 or choose another price in multiple of 0.05.
Looking at those two errors above, you might start thinking – how could you prevent those in the first place? Obviously, there’s a certain guideline to follow in order to properly execute a trade and that is by using the PSE board lot table.
PSE Board Lot Table
The PSE board lot table shows you exactly the minimum number of shares you can trade a particular stock and the minimum price movement it can have at a specific price range.
Apart from that, it can also tell you the minimum investment capital required to own a particular stock. Therefore, the minimum amount you need to invest on stocks varies and will depend on the stock’s market price as well as its corresponding board lot.
You might ask, “Do I need to refer to this table every time I buy or sell a stock?”
No, you don’t. The table above is only for reference so you can easily spot the changes in number of shares and price movements at all price ranges.
Every time you look up stock quotes using COL’s online trading platform, it automatically provides you the information you need – the last price, board lot, and fluctuation values.
Let me give you some examples.
Minimum number of shares
To determine the minimum number of shares, refer to the stock’s price and look for the corresponding board lot within that price range.
For example, if you look at Ayala Corp. (AC), the last closing price was P960 a share and has a board lot of 10.
If you look back at the PSE board lot table, the price 960 falls on item 12 (market price range from 500 to 999.50) which gives you a minimum number of 10 shares. That means, you can only buy shares of AC in multiples of 10 – let’s say in 10, 20, 50, or 100 shares only.
Minimum price increment
To find out the minimum price increment, refer to the stock’s price and look for the corresponding fluctuation within that price range.
For example, if you look at Jollibee Foods Corp. (JFC), the last closing price was P282 a share and has fluctuation of 0.2000.
Going back to the PSE board lot table, the price 282 falls on item 11 (market price range from 200 to 499.80) which gives you a minimum price increment of 0.2000. Meaning, JFC’s price movement will be limited to 0.2000 increments – let’s say 282.20, 282.40, 282.60, or 283.00 only.
Minimum investment capital
To find out the minimum investment capital you need to invest on a particular stock, look for the stock’s price and multiply it by the corresponding board lot within that price range.
For example, if you look at PLDT Inc. (TEL), the last closing price was P1,434 a share and it has a board lot of 5.
If you multiply the two values, it would give you P7,170 (P1,434/sh x 5). Just don’t forget to add the trading fees to get the minimum investment required to acquire TEL.
Using the PSE board lot table provides you three key information in order to properly execute a trade.
- The minimum number of shares you can buy or sell a stock.
- The minimum price increment or fluctuation a stock’s price can move.
- The minimum investment capital required to acquire a particular stock.
In this article, you’ve learned how to use the PSE board lot table. If you have some questions, feel free to drop me a comment below.
Thanks for reading!