STOCK PRICE : The Board Lot Table

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What the heck is the board lot concept in the stock market?

This is one question commonly asked by new investors. They get intimated by this jargon that sometimes, they just get stuck in the process.

So let’s answer that question by presenting to you the single table you’ll ever encounter in your investing career-  the Board Lot Table.

The Board Lot Table

Shown below is the board lot table that controls the price range and lot size/volume of all stock orders in the Philippine Stock Exchange.

How does this table exactly govern the stock market?



Price

Minimum Fluctuations (Tick Size)

Lot Size

0.0001 – 0.0099

0.0001
1,000,000
0.0100 – 0.0490

0.0010
100,000
0.0500 – 0.2490

0.0010
10,000
0.2500 – 0.4950

0.0050
10,000
0.5000 – 4.9900

0.0100
1,000
5.0000 – 9.9900

0.0100
100
10.0000 – 19.9800

0.0200
100
20.0000 – 49.9500

0.0500
100
50.0000 – 99.9500

0.0500
10
100.0000 – 199.9000

0.1000
10
200.0000 – 499.8000

0.2000
10
500.0000 – 999.5000

0.5000
10
1,000.0000 – 1,999.0000

1.0000
5
2,000.0000 – 4,998.0000

2.0000
5
5,000.0000 – up

5.0000
5

First it defines the board lot size for every stock depending on its market price. 

And what is the significance of this board lot size?

For the Normal Market (or Main Board Lot Market), this lot size determines the minimum number of shares one can buy or sell in an order. 

If you want to buy (or sell) more shares, you should use multiples of this lot size as our volume.



Say for instance, you’ve been captured by sexy and pretty Anne Curtis so much after watching her faithfully in a noon-time show every single day,  that you decide to invest and buy shares of SM Development Corporation (stock code: SMDC). You want to know the minimum number of shares you can buy to brand yourself as its noble part-owner. In that way, you think, you can get closer to Anne.



So the first thing you do is to check the current or market price of SMDC. 
Then you find out that its price plays around seven pesos per share, which falls within the range [5.0000 – 9.9900]. 
With this interval, you go back and check in the table that you can start buying SMDC with a minimum of 100 shares. If you have more money to afford buying more shares, you can use multiples of 100 as your volume, like 100, 200, 500, 2000, etc.  You can’t post orders with volumes like 150, 330, 1110, etc. Same goes for all selling participants.

[Again this is for the normal market. You can use the Oddlot Market for orders with volumes less than this board lot.]  


The Board Lot Table also dictates the minimum fluctuation allowed for the stock, again depending on the current price of the stock. 


In our SMDC scenario above, you see that the tick size allowed for SMDC is 0.01. That means you can add 0.01 increment to its current price for your orders, so you can use 7.01, 7.20, 7.84, 7,95, but not 7.115, 7.125, etc. 

The stock market price also moves with this fluctuation, so you’ll be assured that your stock order price and the stock market price will one time hit each other (Your order gets done).


That’s it! That’s the simple role played by the board lot table in our investing battle field.


To integrate it and go up one level higher, I have included below the time and sales of SMDC last October 27 2011.



It shows the number of transaction, then the time when the matching occurred, the price of each matching, the volume, the buyer and the seller (represented by their brokers, so you won’t find individual investor’s name there).



TIMES AND SALES OF SMDC [10/27/2011]

#

Time

Price

Volume

Buyer

Seller

1

12:50:01

7.9500

500

DEUTSCHE

CITISECO

2

12:50:01

7.9500

1000

DEUTSCHE

CITISECO

3

12:50:01

7.9500

1500

DEUTSCHE

CITISECO

4

12:50:01

7.9500

5000

DEUTSCHE

CITISECO

5

12:50:01

7.9500

5000

DEUTSCHE

CITISECO

6

12:50:01

7.9500

5000

DEUTSCHE

CITISECO

7

12:50:01

7.9500

7400

DEUTSCHE

FIRST ME

8

12:50:01

7.9500

7500

DEUTSCHE

ABACUS S

9

12:50:01

7.9500

9600

DEUTSCHE

CITISECO

10

12:50:01

7.9500

16300

DEUTSCHE

BPI SECU

11

12:50:01

7.9500

18000

DEUTSCHE

PAPA SEC

12

12:50:01

7.9500

24100

DEUTSCHE

B.H. CHU

13

12:50:01

7.9500

28800

DEUTSCHE

F.YAP SE

14

12:50:01

7.9500

43000

DEUTSCHE

MANDARIN

15

12:46:26

7.8000

10000

PHILIPPI

PAPA SEC

16

12:46:26

7.8000

35000

PHILIPPI

ATR KIM

17

12:46:26

7.8000

262100

PHILIPPI

EASTERN

18

12:44:57

7.7900

29700

BPI SECU

JP MORGA

19

12:44:46

7.7900

1900

BPI SECU

CITISECO

20

12:44:46

7.7900

2000

CITISECO

CITISECO

21

12:44:46

7.7900

100

CITISECO

CITISECO

22

12:44:46

7.7900

1000

CITISECO

CITISECO

23

12:37:29

7.8000

600

CITISECO

EASTERN

24

12:06:35

7.7900

5000

BPI SECU

ATR KIM

25

12:06:09

7.7900

10000

BPI SECU

ATR KIM

26

12:05:24

7.8000

6500

CITISECO

EASTERN

27

12:05:24

7.8000

20000

PHILIPPI

EASTERN

28

12:05:24

7.8000

10000

ASIASEC

EASTERN

29

11:59:05

7.8000

4600

ASIASEC

CITISECO

30

11:59:05

7.8000

5400

PHILIPPI

CITISECO

31

11:58:02

7.8000

4600

PHILIPPI

TRITON S

32

11:58:02

7.8000

1400

SB SECUR

TRITON S

33

11:58:02

7.8000

4000

PHILIPPI

TRITON S

34

11:57:00

7.8000

2000

PHILIPPI

EASTERN

35

11:51:02

7.8100

1200

BPI SECU

F.YAP SE

36

11:48:32

7.8100

10400

ASIASEC

F.YAP SE

37

11:35:48

7.8000

14000

PHILIPPI

PCCI SEC

38

11:35:48

7.8000

9000

STANDARD

PCCI SEC

39

11:35:37

7.8000

35000

STANDARD

PCCI SEC

40

11:28:27

7.8100

800

CITISECO

F.YAP SE

41

11:24:59

7.8100

2000

FIRST ME

F.YAP SE

42

11:20:01

7.8100

800

CITISECO

F.YAP SE

43

11:16:56

7.8100

6000

FIRST ME

F.YAP SE

44

11:15:02

7.8200

1200

YAO & ZI

PCCI SEC

45

11:12:08

7.8100

4000

FIRST ME

ATR KIM

46

11:09:12

7.8100

2000

FIRST ME

ATR KIM

47

11:08:37

7.8000

6000

STANDARD

FIRST ME

48

11:08:37

7.8000

300

PHILIPPI

FIRST ME

49

11:04:38

7.8000

17900

PHILIPPI

ATR KIM

50

11:04:38

7.8000

1000

PHILIPPI

CITISECO

51

11:04:38

7.8000

4000

PHILIPPI

ATR KIM

52

11:04:38

7.8000

26800

PHILIPPI

PCCI SEC

53

10:52:26

7.7600

1600

CITISECO

ATR KIM

54

10:51:33

7.7600

2000

FIRST ME

ATR KIM

55

10:51:11

7.7600

100

CITISECO

ATR KIM

56

10:50:36

7.7600

6300

UCPB SEC

ATR KIM

57

10:50:36

7.7600

13700

UCPB SEC

WEALTH S

58

10:48:46

7.7600

20000

FIRST ME

WEALTH S

59

10:48:06

7.7600

100

CITISECO

WEALTH S

60

10:48:06

7.7600

9900

CITISECO

PAPA SEC

61

10:39:11

7.7600

5000

R. COYIU

PAPA SEC

62

10:37:24

7.7600

10000

CITISECO

PAPA SEC

63

10:28:00

7.7600

30000

DEUTSCHE

PAPA SEC

64

10:14:46

7.7500

1100

BPI SECU

ATR KIM

65

10:14:46

7.7500

2000

SB SECUR

ATR KIM

66

10:14:46

7.7500

900

BPI SECU

ATR KIM

67

10:11:00

7.7500

100

BPI SECU

PAPA SEC

68

10:10:24

7.7600

3000

CITISECO

PAPA SEC

69

10:07:33

7.7600

2000

FIRST ME

PAPA SEC

70

10:07:28

7.7600

5000

CITISECO

PAPA SEC

71

10:07:28

7.7600

1200

BPI SECU

PAPA SEC

72

10:01:59

7.8000

5000

BELSON S

PCCI SEC

73

09:58:43

7.8000

10000

MERIDIAN

MERIDIAN

74

09:57:26

7.8000

3500

MERIDIAN

MERIDIAN

75

09:54:27

7.8000

600

FIRST ME

PCCI SEC

76

09:53:59

7.8000

2000

ABACUS S

PCCI SEC

77

09:49:20

7.7900

2000

CITISECO

CITISECO

78

09:42:53

7.7500

1000

BPI SECU

CITISECO

79

09:30:01

7.8000

100

CITISECO

PCCI SEC

80

09:30:01

7.8000

500

SB SECUR

PCCI SEC


Price

Volume

Amount

Trades

Percent

1

7.7500

5,100

39,525

5

0.5808%

2

7.7600

109,900

852,824

15

12.5329%

3

7.7900

51,700

402,743

8

5.9186%

4

7.8000

501,900

3,914,820

29

57.5312%

5

7.8100

27,200

212,432

8

3.1218%

6

7.8200

1,200

9,384

1

0.1379%

7

7.9500

172,700

1,372,965

14

20.1767%

Totals

7.8242(ave)

869,700

6,804,693

80

100%


So we can deduce the story of SMDC within that day.
  1. It’s opening price was 7.80, when the market opened at  09:30:01.
  2. It went down to 7.75 at 09:42:53
  3.  It went up to 7.79 at 09:49:20.
And so on and so forth until it closed to 7.95 with its last transaction at 12:50:01 when the market was closing.



You will also notice that all the volumes are multiples of 100, given that the price remained within the interval [5.0000 – 9.9900].



You see, all these commotions are governed by the board lot table!

Have fun investing (and feasting on this table)! 

PS1: Download your FREE copy – Investing in the Philippine Stock Market for Beginners

PS2: Get constant updates from the TrulyRichClub here.


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Very informative! Thank you!

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