STOCK PRICE : The Board Lot Table

(If you want a quick guide for beginners how to start investing in the Philippine stock market, you can download your free ebook here.)

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.

It’s opening price was 7.80, when the market opened at 09:30:01.
It went down to 7.75 at 09:42:53
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)!

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