I do understand that the ASX works up to three decimal points. What I would like to know is how one Australian dollar is divided by .nn For example: Shares in a company is shown as $3.600, $3.590, $3.580. Can you please explain? Dexter
Dear Dexter and readers,
Shares listed on the ASX are quoted up to 3 decimal points as there are stocks that are priced below 1c. The lowest priced security on the ASX is 0.1c or $0.001.
The price of these stocks move in 0.1c or $0.001 increments all the way up to 10c. Thereafter the price increments are in 0.5c movements up to $2.00.
All stocks priced at $2 and higher move in 1c increments.
Top Australian Brokers
- eToro - market-leading social trading platform - Read our review
- IG - Extensive product array and user-friendly platforms - Read our review
- IC Markets - experienced and highly regulated - Read our review
- Avatrade - powerful trading tools - Read our review
Therefore in the example that you gave, the stock can only move in 1c increments as it is priced above $2.00, but if you were looking at a stock that was worth 21c, it would be quoted as $0.210, but if it moved up to the next price increment it would be 21.5c which would be quoted as $0.215.
Sean Nofal, amscotOnline Manager, Amscot Discount Stockbroking
Important Information
The views expressed in this article are those of Sean Nofal, amscotOnline Manager. Amscot Discount Stockbroking is a division of State One Stockbroking Ltd, a participant of the ASX Group. ABN 95 092 989 083. AFSL 247100
Other articles in this week’s newsletter
Pairs trading – the No. 1 strategy for traders
When junior miners catch a bid, gains will be fast & furious
Why are shares quoted to 3 decimal places?
Top 10 CFD stocks for the week
