Different Lot Sizes and Odd Lots
Each Hong Kong stock sets its own lot size, from 100 shares to several thousand; the minimum cost of one lot is the share price times the lot size.
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Text version · Hong Kong Stock Rules, lesson 3: “Different Lot Sizes and Odd Lots”
Each Hong Kong stock sets its own lot size, from 100 shares to several thousand; the minimum cost of one lot is the share price times the lot size.
Each stock sets its own lot size
Hong Kong stocks trade in lots, but each stock sets its own board lot: 100, 200, 500, 1,000 and 2,000 shares are all common. Check the lot size on the quote page before you order.
A low share price doesn't mean a cheap lot
Minimum cost of one lot = price × shares per lot. A HK$3 stock with a 2,000-share lot costs HK$6,000 per lot, more than a HK$30 stock with a 100-share lot.
Shares short of a lot are an odd lot
Bonus issues and rights issues often leave you with an odd lot of fewer than one lot's shares. They can't be sold in whole lots in the regular market, only in the odd-lot market, usually below the market price.
Key takeaways
- Hong Kong stocks trade in lots, but lot sizes differ by stock (100, 200, 500, 1,000, 2,000 shares and so on), so check before you order.
- Minimum cost of one lot = share price × lot size: a low share price doesn't mean a cheap lot.
- Odd lots smaller than one lot (for example left over after a bonus or rights issue) have to be traded in the odd-lot market, usually at worse prices than the regular market.
Try it yourself
You can do these exercises in this lesson's interactive simulation:
- In the first simulator, switch through the four sample stocks: which costs the most per lot? Which the least?
- Budget HK$20,000 for sample stock B: how many lots can you buy? Why can't the rest buy more?
- The odd-lot simulator starts with 1,250 shares of sample stock A: which part can sell at market price, and which part is an odd lot?
- Raise the odd-lot discount to 10%: how much less do you get for selling everything?
Quiz and explanations
- 1. A stock is HK$15 with 500 shares per lot. What's the minimum cost of one lot, before fees?
- Answer: HK$7,500.HK$15 × 500 shares = HK$7,500.
- 2. Stock A is HK$300 with 100 shares per lot; stock B is HK$3 with 2,000 shares per lot. Which costs more per lot?
- Answer: Stock A.One lot of A is HK$30,000 and one lot of B is HK$6,000. Looking at the share price alone misleads you; multiply by the lot size.
- 3. You hold 1,250 shares of a stock with 500 shares per lot and want to sell them all. What happens?
- Answer: 1,000 shares sell in the regular market; the 250-share odd lot goes to the odd-lot market, usually at a worse price.The regular market only trades whole lots: 2 lots (1,000 shares) sell as usual, and the remaining 250 shares are an odd lot that needs a buyer in the odd-lot market.
Terms in this lesson
- board lot (Board Lot): The exchange's minimum trading unit. A-shares and Japanese stocks trade in lots of 100 shares, each Hong Kong stock sets its own, a Taiwan lot is 1,000 shares, and US and Korean stocks can be bought from 1 share.
- odd lot (Odd Lot): A number of shares smaller than one lot. In many markets you can only buy whole lots, and odd lots have to be traded in special sessions or markets, or can only be sold.
- odd-lot market (Odd-lot Market): A market just for trading shares smaller than one lot. Few people take part, prices are usually well below the regular market, and selling can take a long time.