Hello, Being a beginner, this is a naive question. I thought that the smallest number of shares that you could buy in a trade was 100. But now I am not sure. Is there a lower limit? I want to actually start learning now but want to buy very small initially. Thankyou Nana.
1. One share is the smallest number of shares permitted. There are some odd lot rules for certain trading routes, not sure on what they are. But it sure ticks off a trader, getting hit for one share, LOL.
Actually I wouldnt want to buy as small as one. I was thinking more like 10,15 or 20 or so to reduce my risk and test out some ideas. Thanks for your help.
But don't forget that the most per-share brokers have a minimum commission which is typically $1. Therefore, you'll have to pay at least that minimum commission even if you just buy just 1 share.
Not a bad idea imo. Ive only been trading 4 months and i will sometimes open a position with only an odd lot to keep my risk down. Long or short i cant tell any difference with getting the orders filled as opposed to 100sh and bigger orders. Doing the odd lot thing sometimes has been a tactic which has helped me from losing any of my capital(28K) to date. good luck in your trading ......... rj
OMG yes! It's the worst when you're sitting there and you just get to the front of the line and some guy gives you 3 shares or something dumb like that and then it skyrockets.