For many beginner investors, one of the most basic questions when entering the stock market is, “How many shares are in 1 lot?” Understanding the concept of lots is essential because all stock transactions on the exchange are carried out in this unit. Without grasping this, investors might miscalculate capital, transaction fees, and investment risks.
This article explains what a lot is, how many shares are in one lot in Indonesia, how to calculate the required capital, and the new alternative of U.S. stock tokens that can be purchased with more flexible capital.
Read also: How to Easily Calculate a Stock’s Fair Value
What Is a Lot in Stocks?
A lot is the standard unit used to buy and sell stocks on the Indonesia Stock Exchange (IDX). This lot system helps keep transactions orderly and efficient so that stock prices do not fluctuate excessively due to very small-volume trades.
Before 2014, 1 stock lot in Indonesia consisted of 500 shares. However, after new regulations were introduced to make stock investing more accessible for retail investors, 1 lot was simplified to 100 shares.
This means the definite answer to the question “How many shares are in 1 lot?” is 100 shares.
Why Is 1 Lot = 100 Shares?
The decision to set the number at 100 wasn’t arbitrary. The IDX had several considerations:
- Easier for beginners. With smaller lot sizes, the initial capital required becomes more affordable.
- Encouraging retail participation. The government aims to bring more people into investing.
- Improving market liquidity. Smaller lot sizes lead to more active and dynamic trading.
Thanks to this rule, investors can now buy stocks without needing as much capital as in earlier years.
How to Calculate Capital Needed to Buy Stocks by Lot
To know how much capital is required, the formula is simple:
Number of Lots × 100 Shares × Stock Price
Example:
If stock ABCD is priced at Rp1,000 per share:
- 1 lot = 100 × Rp1,000 = Rp100,000
- 10 lots = 1,000 shares × Rp1,000 = Rp1,000,000
It’s crucial to calculate your capital accurately before buying to avoid insufficient funds when placing an order.
Benefits of Understanding the Lot Concept
- Accurate capital planning. Investors know exactly how much money is needed for each transaction.
- Better portfolio allocation. Knowing the number of shares helps in determining proper investment proportions.
- More effective trading strategies. Investors can calculate risk and potential returns with precision.
Read also: Complete Stock Investment Guide for Beginners
Tips for Beginners When Buying Stocks in Lots
- Choose stocks based on risk. Don’t rush into buying just because a stock is cheap—check its fundamentals and reputation.
- Start small. Buying just 1–2 lots is enough to learn how price movements work.
- Use auto-order features. Tools like stop loss or buy-on-breakout can support automatic trading strategies.
- Check transaction fees. Each broker has different fees, which affect your total capital.
- Diversify your portfolio. Avoid putting all your funds in one stock—spread them across sectors to reduce risk.
U.S. Stock Tokens as a More Flexible Alternative
If the capital requirement for conventional stocks still feels too high, U.S. stock tokens can be a practical alternative. These tokens represent fractional ownership of major U.S. stocks and can be purchased with much smaller capital. Platform like Mobee offers Indonesian users to buy fractions of popular U.S. companies without needing the full share price.
This option is suitable for beginners who want exposure to global markets while maintaining flexibility in budgeting and portfolio management.
Advantages of U.S. Stock Tokens:
- More flexible capital (can start with a small amount).
- Access to global companies.
- Prices follow the movement of the actual underlying stock.
- Easier diversification.
For example, if Tesla’s stock price in the U.S. market reaches USD 200 per share, investors don’t need to buy a full share. With stock tokens, they can buy fractional units according to their available capital.
This makes stock tokens an appealing alternative for beginners who want to start investing in global companies without the burden of high upfront costs.
Conclusion
Understanding the stock lot unit is crucial for beginner investors. Knowing that 1 lot = 100 shares helps investors calculate capital accurately, plan strategies, and manage risks more effectively. In addition, U.S. stock tokens provide new opportunities to gain exposure to major global companies with more flexible capital.
Interested in starting stock or stock token investing? Download the Mobee app now and begin your investment journey!
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