Date: August 11, 2017
Whenever you trade, you follow a scale of minimum bid size. For example, for a stock that is $1.21, you have to bid at intervals of 1 cent, i.e. $1.22, $1.23, etc. For a stock that is $3.54, you have to bid at intervals of 2 cents, i.e. $3.56, $3.58, etc:
| Share Price (S$) | Minimum Bid Size |
|---|---|
| Up to $1.00 | 0.5 cent |
| Up to $3.00 | 1 cent |
| Up to $5.00 | 2 cents |
| Up to $10.00 | 5 cents |
| Above $10.00 | 10 cents |
SGX will revamp the size of share trading bid intervals with effect from 24 December 2007. The new schedule seeks to improve trading efficiency and market liquidity. The bid-ask spread of securities is expected to be narrower and investors will find that the minute-by-minute share price movements smaller than before.
Revised Minimum Bids Schedule:
^ Excludes exchange traded funds, bonds, debentures, loan stocks; and those securities traded in Hong Kong Dollar and Japanese Yen. SGX will be customizing the minimum bid structures for these products.
* All existing ETFs except ABF Singapore Bond Index ETF (ABF Bond ETF) will adopt a bid size of $0.01 as of 11 December 2007. ABF Bond ETF will adopt a bid size of $0.001.
Example: Company X share currently trades at $6.10. If the price jumps by one bid, it will now rise by one cent to $6.11 instead of $6.15.
The threshold for member firms’ forced order key will also be widened from the current +/- 6 bids to +/- 10 bids for the main securities products. Your broking house may impose a charge for the use of the force key, please enquire with your broker for details.
