Hong Kong stock basics: I have only $10. How can I trade HK stocks?
Before we answer the question, we must first understand the trading unit in HKEX is quite different from stock exchanges in the U.S.
In the Hong Kong stock market, the smallest trading unit for an order executed is 1 "board lot". This term may sound very strange to you if you have only traded in the U.S. market, but it’s actually quite simple.
What is a “board lot”?
Stock exchanges use “board lot” as the trading unit and it determines the number of shares you can trade.
In Hong Kong stock market, the number of stocks of each lot depends on their stock prices. For instance, Tencent Holdings has 100 shares per lot, and Galaxy Entertainment is 1,000 shares per lot.
In Hong Kong stock market, the number of stocks of each lot depends on their stock prices. For instance, Tencent Holdings has 100 shares per lot, and Galaxy Entertainment is 1,000 shares per lot.
The specific number of stocks per “lot” of each stock is viewable at all terminals of moomoo.
What is an “odd lot”?
An order amount that is less than one board lot is called an “odd lot”. In other words, you can simply intepret it as a fractional share. For instance, Tencent Holdings has 100 shares per lot, but you only hope to purchase 40 shares. Then this order is conducted as an odd lot.
Note: Odd lots cannot be traded through the automatic order matching system of the Hong Kong Stock Exchange. But investors can trade odd lots through the mobile version of Moomoo App as Moomoo manually matches your orders in the special odd lot section.
FAQs about “Odd lot trading
1. Which stocks can be traded in odd lots?
Investors can buy/sell stocks in odd lots. The more liquid the stock is, the more likely it has odd-lot transactions.
Investors can buy/sell stocks in odd lots. The more liquid the stock is, the more likely it has odd-lot transactions.
However, investors cannot short/cover shorts in odd lots, unless investors cover their shorts in odd lots that are passively generated by company actions.
Example: Suppose a security has 1,000 shares per lot. When your short position is 1,100 shares, you can cover the short by buying 100 odd shares; But when your short position is 1,000 shares, you are prohibited from buying any odd lots.
2. Odd lots are matched manually. How can I see their quotes?
Moomoo does not provide specific odd lot quotations.
After the odd-lot trading order is placed with Moomoo, it will be placed in the odd-lot section of the stock exchange and waits for the odd-lot dealer to confirm.
After manual matching, the order will be returned to the Hong Kong Stock Exchange with a "D" note.
Moomoo does not provide specific odd lot quotations.
After the odd-lot trading order is placed with Moomoo, it will be placed in the odd-lot section of the stock exchange and waits for the odd-lot dealer to confirm.
After manual matching, the order will be returned to the Hong Kong Stock Exchange with a "D" note.
3. Odd lot trading typically costs more. Why?
Why odd lots cost more in the market:
An odd lot order generally costs more due to higher commission levels and takes longer to complete than other orders.
Why odd lots typically cost more on moomoo:
(1) It’s not because of commission. The Hong Kong stock odd-lot fee is the same as the normal trading fee on moomoo.
The detailed fee table is listed below:
An odd lot order generally costs more due to higher commission levels and takes longer to complete than other orders.
Why odd lots typically cost more on moomoo:
(1) It’s not because of commission. The Hong Kong stock odd-lot fee is the same as the normal trading fee on moomoo.
The detailed fee table is listed below:
(2) Under normal circumstances, the odd lot transaction will be several price points inferior to the whole lot, and the transaction speed is related to the deviation range of the input price from the market price and the number of odd lot shares.
As odd-lot orders are matched manually, there is no definite price difference between odd lot and the whole lot. Investors can refer to the market price of an entire lot of stocks to determine the buying and selling price.
As odd-lot orders are matched manually, there is no definite price difference between odd lot and the whole lot. Investors can refer to the market price of an entire lot of stocks to determine the buying and selling price.
4. Odd lot trading hours
Odd lots can only be traded during the continuous trading hours in the Hong Kong stock market (9:30~12:00 on the trading day and 13:00~16:00 on the trading day).
There is no pre-opening market and closing auction period.
5. How many shares can you trade with odd lots?
The number of shares traded in an odd lot shall not exceed one lot.
When choosing odd-lot order trading, orders exceeding one lot of the stock will be rejected by the stock exchange.
6. Price limit of odd-lot trading
The HKEX stipulates that the buying/selling price of odd shares shall not deviate from 9 times the market price.
Because odd-lot transactions are manually matched, odd-lot orders would be executed immediately even if users input very unfavorable prices. To better protect investors’ interest, orders that deviate from the market price by 5% will be rejected.
How to trade odd lots?
(1) At stock page, click "trade" button.
(2) Click "Order type" and select "odd lot".
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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5toesloth : Wow this is awesome!
Angie Chen chen : D
MoneyMiser : Very comprehensive. Thanks
GodLike168 : can apply odd lots on US stocks also?
101526531 : what is the cost of trading odd lot? It only states that it has higher comission. Does it mean 5% additional comission? Or is there any other fee?
Investing with moomooOP GodLike168: No, US stock can’t be traded in fractions on moomoo
The minimum purchase unit of US stocks is 1 share, and it’s the same for both US and Singapore investors.
Investing with moomooOP 101526531: To clarify, odd-lot trading costs more in the market due to higher commission and longer trading time in most cases. However, it's not exactly why it costs more on moomoo.
1. Moomoo doesn't charge any additional fees. The Hong Kong stock odd-lot fee is the same as the normal trading fee.
2. As odd-lot orders are matched manually, there is no definite price difference between the odd lot and the board lot. But based on historical cases, the odd-lot transaction will be several price points inferior to the whole lot, which is the price investors are willing to pay for fractional shares.
102870973 : Good explanation
Investing with moomooOP 102870973:
101488189 Gid : Needed this Tks
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