How to read and use the “PSE Board Lot” table
How much money do you need to start trading stocks in the Philippines?
What is the minimum number of PLDT, East West Bank, or Megaworld shares that you can buy or sell at a given time?
You probably don’t know it but these questions can be answered by looking at what is called the PSE Board Lot Table.
What is the PSE Board Lot Table?
The Board Lot table of the Philippine Stock Exchange (PSE) is a guide for investors that shows the minimum number of shares that can be bought or sold at any given time and the minimum price increments of each PSE-traded stock.
Here’s what the PSE Board Lot table looks like.
PSE Board Lot Table
|Stock Price||Minimum Fluctuations (Tick Size)||Board Lot (Lot Size)|
|A||0.0001 - 0.0099||0.0001||1,000,000|
|B||0.0100 - 0.0490||0.0010||100,000|
|C||0.0500 - 0.2490||0.0010||10,000|
|D||0.2500 - 0.4950||0.0050||10,000|
|E||0.50 - 4.99||0.010||1,000|
|F||5.00 - 9.99||0.010||100|
|G||10.00 - 19.98||0.02||100|
|H||20.00 - 49.95||0.05||100|
|I||50.00 - 99.95||0.05||10|
|J||100.00 - 199.00||0.10||10|
|K||200.00 - 499.80||0.20||10|
|L||500.00 - 999.50||0.50||10|
|M||1,000 - 1,999||1.00||5|
|N||2,000 - 4,998||2.00||5|
|O||5,000 - up||5.00||5|
This table governs “Normal Lot” trades in the PSE. The “Normal Lot” market is slightly different from the “Odd Lot” market, which we will discuss in a separate article.
Don’t worry for now. You’re most likely just “trading normally”, so you only need to understand the PSE Board Lot table.
How to Use the PSE Board Lot Table
The PSE Board Lot Table can be used to determine:
- (1) the minimum number of shares that can be traded for each stock;
- (2) the minimum price fluctuation or increment applicable to each stock; and
- (3) the minimum amount of money needed to buy any PSE-traded stock.
Let’s look at three examples showing the application of the Board Lot table.
1. Minimum Number of Shares that can be Traded
To know the minimum number of shares that can be bought or sold for each stock, follow these steps.
- Step 1: Get the current price of the stock. Let’s say you want to know the minimum number of shares of PLDT (stock code: TEL) that you can buy or sell. Check the PSE website or your broker’s website to get TEL’s current price. Let’s say you checked and saw that its currently being traded at P2,890.
- Step 2: Check the row in the PSE Board Lot table corresponding to that stock price. TEL’s stock price of P2,890 corresponds to “Row N” in the Board Lot table. This is because the price of P2,890 is within the range P2,000 to P4,998.
- Step 3: In that row, determine the Board Lot (Lot Size) for the stock. The lot size represents the minimum number of shares that can be traded for any stock. In the case of PLDT, the lot size is 5 — meaning, a minimum of 5 shares of PLDT can be bought or sold at any time. Remember, this is minimum. Of course, the trades can be higher than 5 shares and all posted trades may be processed as long as the number of PLDT shares being traded is divisible by 5.
Easy, right? Let’s move on to the next application of the Board Lot table.
2. Minimum Price Increment or Fluctuation
Let’s say you want to sell your shares of East West Bank (stock code: EW). It currently trades at P29.60. Can you sell it at P29.68? How about at P29.97? Can you sell it at P30.00?
Here are the steps needed to know the price increment or fluctuation for any give PSE-traded stock. As you can see, this is useful if you want to input your own buying or selling price for a stock.
- Step 1: Get the current price of the stock. Just like in Example 1 above, you can check the PSE website or your broker’s website to get the current price of your stock. In the case of EW, we have seen that its price is P29.60.
- Step 2: Check the row in the PSE Board Lot table corresponding to that stock price. If EW’s stock price is P29.60, what row in the Board Lot table corresponds to this price? If you answered “Row H”, you are correct. The P29.60 price is within the price range in that row, which is P20.00 to P49.95, so we will use this row in Step 3.
- Step 3: Determine the Minimum Fluctuations (Tick Size) for that stock. The “Tick Size” column represents the minimum price change or increment for any given stock. Given the price of EW, the relevant row is “Row H” which shows that EW’s tick size is PHP 0.05. This means prices to be used when trading EW must be in increments of or divisible by 0.05.
So, can you sell EW at P29.68? Since it’s not divisible by 0.05, this cannot be possible. Can you sell EW at P29.97? Again, since this is in increments of 0.05, this price will not be accepted.
Can you sell EW at P30.00? A big yes! Since this price is divisible by 0.05, EW can be sold at this price! However, whether the sale will be a done trade will, of course, depend on the presence of buyers willing to purchase EW shares at that price.
3. Minimum Amount of Investment Needed to Buy Stocks
Now, a very useful application of the Board Lot table is in determining the minimum amount of money needed to start trading stocks. Actually in the PSE, there is no minimum fixed amount of money needed to start trading stocks; it depends on the price of the stock and the minimum lot size.
Let’s see an example below. Let’s say we want to know how much we need to buy the minimum number of shares of Megaworld Corp. (stock code: MEG).
- Step 1: Get the current price of the stock. Again you can simply check the PSE website or your broker’s website to get the current price of your stock. In the case of MEG, let’s say its current price is P3.35.
- Step 2: Determine the lot size of that stock in the PSE Board Lot table. We need to know the minimum amount of MEG shares that can be traded. To do this, refer back to the step-by-step process explained in Example A above. Checking MEG in the Board Lot table, we see that its minimum lot size is 1,000 shares in “Row E”.
- Step 3: Multiply the current price with the minimum lot size. The product of the current price and a stock’s minimum lot size equals the minimum amount of money you need to buy that stock. In the case of MEG, this is P3.35 x 1,000 shares = P3,350.
This means you need P3,350 to start buying MEG shares. Wait, there’s more!
Take note that brokers charge certain fees and commissions so this amount will surely increase. Read our article on PSE Stock Trading Fees and Charges to find out what these specific fees and charges are.
Also, be informed that some stock brokers require that you fund your trading account a minimum amount of money before you can start trading. This amount is usually higher than the minimum amount of money you need to buy a particular stock. Find out the minimum amount needed to fund your broker’s trading account in the article List of Online Stock Brokers in the PSE.
Now you know how to use the PSE Board Lot table. Again, be reminded that this table is only applicable to trades using “Normal Lots”. In our next article, we’ll see an example of trading in the alternative market, the “Odd Lot” market.
Want more awesome educational posts? Click the links below!
- Comparison of Online Stock Brokers in the Philippines
- List of PSE Stock Trading Fees and Charges
- Newbie Guide: How to Trade Stocks in the Philippines
- FREE! Stock Target Prices and Brokers’ Recommendations
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