How Many Shares Are in 1 Stock Lot? Understand Stock Lots Before You Start Investing

Many beginner investors are surprised when they first decide to buy stocks. Instead of being purchased individually, stocks are traded in standard units called lots. As a result, stock purchases must follow a specific quantity determined by the lot system.

So, how many shares are in 1 stock lot, and why is this system used in stock trading? Let’s explore the concept of stock lots so you can invest with greater confidence from the very beginning.

What Is a Stock Lot?

A stock lot refers to the standardized quantity of shares that serves as the basis for trading transactions on a stock exchange.  This system helps ensure that buying and selling activities are conducted in an orderly and standardized manner for all investors.

Because stock transactions use lots as the trading unit, investors do not purchase shares individually. When placing an order, the number of shares bought or sold is calculated based on the number of lots being traded.

How Many Shares Are in 1 Stock Lot?

Many beginner investors often ask, “How many shares are there in 1 stock lot?” The answer is 100 shares. This rule applies on the Indonesia Stock Exchange (IDX) and serves as the standard reference for all stock trading transactions.

This regulation helps create a more structured and efficient trading system. By using a uniform unit of measurement, transactions can be carried out more systematically while also supporting market liquidity..

Why Is the Lot System Used?

After understanding how many shares are included in 1 stock lot, you may wonder why the stock exchange uses this system. In addition to maintaining order in the market, the lot system provides benefits for both investors and the exchange itself because it:

• Creates a more organized and standardized trading process, ensuring that all investors use the same unit when conducting transactions;
• Simplifies calculations and trading systems since the number of shares traded follows a predefined standard;
• Supports market liquidity by establishing a more orderly and efficient transaction mechanism.

Simple Example of a Lot Calculation

To make the concept easier to understand, consider the following example. By knowing how many shares are included in 1 lot, you can also estimate the capital required before purchasing a stock.

• Stock price: IDR 1,000 per share
• 1 lot: 100 shares
• Total funds required: IDR 1,000 × 100 = IDR 100,000

Based on the example above, purchasing 1 lot of stock priced at IDR 1,000 per share would require approximately IDR 100,000. Please note that this amount does not include transaction fees charged by the brokerage company.

How to Buy Stocks Using the Lot System

Stocks are purchased in lot multiples through a brokerage application or trading platform. Since a stock lot is the standard trading unit used on the exchange, investors must specify the number of lots they wish to purchase when placing an order.

You can buy stocks in lot units through the official Growin’ by Mandiri Sekuritas platform. The platform provides online access to stock trading, allowing you to purchase shares and monitor your portfolio more conveniently.

Start Investing with the Right Foundation

Before buying stocks, it is important to understand the concept of lots as the basic trading unit on the stock exchange. This fundamental knowledge can help you trade with greater confidence from the start.

Understanding how many shares are included in 1 stock lot also helps you calculate your capital requirements and plan your investments more effectively. As a result, you can reduce the risk of mistakes when beginning your investment journey.

So, what are you waiting for? Start your investment journey today with the right knowledge and convenient trading access through Growin’ by Mandiri Sekuritas!