Taiwan Stock Rules
Trade-by-trade matching, the 10% price limit, 1,000-share lots and odd lots, T+2 settlement, day trading and the intraday price stabilization measure: learn the rules before you trade Taiwan stocks.
For: Beginners about to open an account in Taiwan or who have just started trading Taiwan stocks
This course uses ideas from the courses below (optional; you can start right away).
- 1
Pre-market, Intraday Trading and the Closing Call Auction
No sign-up neededTaiwan takes orders from 8:30, opens at 9:00, runs a 5-minute closing call auction from 13:25 and closes at 13:30; after the close there's also after-hours fixed-price trading.
5 min - 2
The 10% Price Limit: How Far a Stock Can Move in a Day
Text versionTaiwan stocks can move at most 10% from the previous close each day; at limit-up buy orders queue and at limit-down sell orders queue, so you may not get a fill either way.
5 min - 3
1,000-Share Lots and Odd-Lot Trading
Text versionTaiwan stocks normally trade in lots (zhang) of 1,000 shares; if you can't afford a whole lot, you can buy odd lots share by share, but they trade differently and more slowly.
5 min - 4
T+2 Settlement and Settlement Default
Text versionTaiwan trades settle on the 2nd business day after the trade: the money for a purchase must be in your settlement account by then, and falling short is a settlement default with serious consequences.
6 min - 5
Day Trading and the Halved Transaction Tax
Text versionA stock day trade means buying and selling the same stock on the same day and settling only the difference; the transaction tax is halved to 0.15%, but you still have to account for commission and the risk of not being able to sell.
6 min - 6
The Intraday Price Stabilization Measure
Text versionDuring trade-by-trade matching, if the next trade would move too far from the previous one, the exchange delays matching for about 2 minutes and switches to a call auction, so prices can't spin out of control in an instant.
5 min