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?
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.
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.
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)!
PS1: Download your FREE copy - Investing in the Philippine Stock Market for BeginnersPS2: Get constant updates from the TrulyRichClub here.
