If you want to invest in local stocks, you need to understand the board lot system. With this board lot table as your guide, you can estimate how much money is needed to buy shares of a certain company.
Find out how to use the table when buying stocks through the Philippine Stock Exchange (PSE). Keep reading below.
Understanding the board lot table
There are 3 columns that make up the board lot table. Learn what each column means:
Stock price – Also known as the market price, this column shows the ranges of stock prices.
Board lot – The board lot or lot size is the minimum number of shares of a company that you can buy or sell depending on the stock’s current price.
Tick size – This is the smallest price change allowed for a stock. A stock’s price can only go up or down by increments of the amount indicated in this column.
| Stock price (market value) | Board lot (minimum lot size) | Tick size (minimum price change) | |
| 1 | P0.0001 - P0.0099 | 1 million | P0.0001 |
| 2 | P0.01 - P0.049 | 100,000 | P0.001 |
| 3 | P0.05 - P0.249 | 10,000 | P0.001 |
| 4 | P0.25 - P0.495 | 10,000 | P0.005 |
| 5 | P0.50 - P4.99 | 1,000 | P0.01 |
| 6 | P5 - P9.99 | 100 | P0.01 |
| 7 | P10 - P19.98 | 100 | P0.02 |
| 8 | P20 - P49.95 | 100 | P0.05 |
| 9 | P50 - P99.95 | 10 | P0.05 |
| 10 | P100 - P199.90 | 10 | P0.10 |
| 11 | P200 - P499.80 | 10 | P0.20 |
| 12 | P500 - P999.50 | 10 | P0.50 |
| 13 | P1,000 - P1,999 | 5 | P1 |
| 14 | P2,000 - P4,998 | 5 | P2 |
| 15 | P5,000 and up | 5 | P5 |
Using the board lot table
Follow the 3 steps below on how to navigate the board lot table when making your first transaction.
Step 1: Find the range
Know the current price of the stock you want to buy or sell. Then, look at the stock price column to find the row that the share price falls under.
Example: You want to invest in Company A, whose stock is currently trading at P150 per share. In the table above, you’ll refer to row 10 for the board lot and tick size.
Step 2: Know the minimum lot size
Look at the board lot that corresponds to the stock price you’ve identified. This is the minimum number of shares you can purchase or sell.
Example: Since 1 share of Company A costs P150, you must buy at least 10 shares worth P1,500 in total.
What if you can afford to buy more? You can transact in multiples of the corresponding board lot. Using the example above, you can acquire shares of Company A in multiples of 10 such as 20, 30, 40 and so on.
What if you can afford more, but the money you have isn’t enough for the next increment? Can you buy 11 or 21 shares of Company A? On the PSE’s normal market, you can’t make such a transaction.
These non-standard lot sizes are called odd lots. Transactions with odd lot sizes can only be made through the odd lot market.
You can make these trades with the help of your chosen broker either via broker-assisted or online platform transactions.
Step 3: Identify how much lower or higher your buying price can be
Stock prices can only move in increments of their respective tick size. You can increase or decrease your buying or selling price by increments of this peso amount.
This helps ensure that the prices set by buyers and sellers (known as bids and asks) can match.
Example: Company A’s current stock price is P150. However, due to recent economic news, you believe you can buy it at a lower price.
Given the tick size on row 10, the price can go up or down by P0.10. This means you can lower your bid by increments of P0.10 and set the price at P149.90, or P149.80, and so on.
Remember that your order will only be fulfilled if someone is selling enough of their shares at the price you’ve set. You’ll also need to pay fees and taxes when buying or selling stocks.
Learn more about how to invest in the stock market through our beginner’s guide.
