What is "Odd Lot"?

A lot that is not equal to 100 shares? that's my guess....

MMC Coming to 0.95

Number of share which was less than minimal trading lot.
Eg you have 102 shares, 2 share are odd lot.

Hi Everyone!

a noob question from me..for example i have bought 500 shares but i only settle the payment for 200 shares on T+3 day, so the remaining shares will forcefully sold at T+4 day?

Yes.

Thanks.
How did the 2 shares come about in the first place?
How to buy and sell odd lots?
Are these shares sold or bought at a lower price than the normal lots?

Mostly it come from some bonus issue or right issue like 3:1 or 6:1 or some ratio that won't result in round number.

There is a secondary market where people can qoute buy and sell for those odd lots.

It depends on buy and seller willingness, there is no proper guide or norm what price it should be traded at. It depends which party is more eager to do the transaction.
But generally it traded slight below the market price but for those 1 shares or 2 shares generally it will only trade at the price that significant higher than normal market price. Because you won't sell 1 share at 1.00, right? 1 x 1.00 = 1.00 ended with negative after deducting the commission and stamp duty. If the share's market price is 1.00. Those owning 1 share of it will qoute like RM50 or something like that to sell.

Also 1 share is valuable for those have 99 shares, because by getting the 1 share, you can trade in open market already.

Oh.

Then if I have 80 odd shares now, can I wait for the next bonus issue? If next bonus issue gives me 30 shares, then my holding automatically add up to become 1 normal lot of 100 shares and 1 odd lot of 10 shares?

If 1 share is so valuable to the buyer with 99 shares, can I break up my normal lot to become odd lot and sell that 1 share?

Yes, as long as your CDS account have more than 100 shares, you can trade.
There is no such thing of 1 normal lot of 100 shares + 1 odd lot of 10 shares.

With CDS, they treat the just like figure in your saving account, you sell 1 lot then 110 - 100 = 10 shares left. You want to sell 1 share in the odd lot market 10 times also can, or 10 shares x 1.

But even if you break up and sell 1 share each, you won't gain much out of it either even though you are selling at RM50 compared to normal price of a few RM as commission will eat large chunck of it already, remember the min commission, stamp duty?

You sell 1 shares, then ended up 9 shares, so if not more buyer for the 1 share, then you ended 'more odd' position.
Generally people want to make their CDS clean an tidy and rounded figure, don't want to have xx counter has 521 shares, zz counter has 2342 shares, bb counter has 5926 shares, right? Try to earn extra few RM with some hassle and ended up with some troublesome trade later on? Doesn't make sense.

Thanks cherroy

FYI for CIMB itrade:

1. Brokerage Rate
Standard Rate 0.70% - For transaction value at or below RM100,000
0.60% - For transaction value exceeding RM100,000 and at or below RM500,000
0.50% - For transaction value exceeding RM500,000
Special Rate Brokerage Rate specified by user in the calculator.
The effective rate that will be used for calculation will be the Brokerage Rate specified by user in the calculator which is not 0.70%
A minimum fee of RM2 for bonds/loan stocks, RM12 for odd lot stocks and RM28 for normal stocks/warrants.
2. Clearing fee 0.03% of transaction value with a maximum of RM1000.00 per contract
3. Stamp duty RM1.00 for RM1,000 or fractional part of transaction value.

Under the new BTS introduced at the beginning of this month,it is now possible to buy 1 share without having to pay prices like RM50 per share.

You can just check the current seller in the odd lot board(not sure though whether you can see this in your online portal)and take one share from the seller.For example ,the seller(odd lot) for Sime now is 7.20 and there is 99 shares queing to sell,you can buy one share and the total amount you'll pay for it is:


share price 7.20
Commission 12.00
Stamp duty 1.00
clearing fee 0.01
..........
total 20.21

The unfortunate seller(assuming he only managed to sell one share at the end of the day)will end up in the negative.


If you do not wish to end up like the seller,my advice is don't q to sell,just check the buyer price and let go if u are satisfied with the price.

Mean that partial done is allowed now.

Curios to know, what if ended up with negative after deducting the commission + stamp duty, seller need to pay the broker firm instead of getting money?

YES

Then it is really stupid act to sell then still need to pay the broker firm.

That's why one should not q,because you may end up partially done.

Another way to salvage if you are the unfortunate seller/buyer is trade an additional board lot and the commission will be calculated on the aggregate volume.

But with partial done allowed that it raised the problem already.

Just like one had 50 shares, so there is no Q for buying, so you put up to sell 50 shares, but some jokers come to buy 1 share from you (<-- as allowed partially done), then no more takers, ended up selling 1 share and paying money to broking firm.

So not that good as well under the new BTS's partial done new rule.

You need somebody to Q in the first place, right?

This post has been edited by cherroy: Dec 19 2008, 10:52 AM

I think there are pros and cons to the new partially done allowed of the new BTS system,In fact,the problem highlighted by you also applies to the board lot market eventhough the bid and ask quote may be one bid only.For eg,if you q to sell 5000 Hevea and some joker come and buy 100 shares from you at 4.59pm(assuming your price is the TCP price)you will still end up in the negative .


At least under the new BTS system,you need not pay prices like RM50 per share to get the one share required.


If u let someone else be the hero and put up his odd lot quote,you will be able to avoid the pitfall.

Unless and until the odd lot market becomes more liquid,(more buyers and sellers),this problem mentioned will persist.

When is T+3?

If I sell a share on Monday. Will T+3 means Wednesday or Thursday?

If I sell a share on Monday. Will a public holiday falling on Tuesday affect the timing of T+3?