Must-read for converting stocks to TWD: How to calculate one share and one lot? Understand the differences between Taiwan stocks and US stocks in one go

New investors in the stock market often find themselves confused by concepts like “one lot” and “one share,” especially when they see the vastly different trading prices between Taiwan stocks and US stocks. Why does the same stock have such a big price difference in different markets? The key lies in the completely different trading unit rules in these two places.

Fundamental Differences in Trading Units Between Taiwan Stocks and US Stocks

To understand the issue of converting stocks to TWD, first recognize a basic rule difference:

Taiwan stocks are traded in “one lot” (1000 shares), while US stocks are traded in “one share.” This seemingly simple distinction directly affects investors’ entry thresholds and price perceptions.

For example, TSMC:

• Taiwan stock (2330): share price is 561 New Taiwan Dollars, so buying one lot requires 561 × 1000 = 561,000 TWD (about 560,000)
• US stock (TSM): share price is 95 USD, buying one share costs 95 USD (about 3,000 TWD)

The same company, same stock, why does one require spending 560,000, and the other only 3,000? The answer lies in the difference in trading units and the logic of converting stock prices to TWD.

What Is Stock Price? How to Understand It Correctly

Stock price is the transaction price per share when buying or selling stocks. It reflects real-time market supply and demand, constantly changing with buy and sell transactions.

Stock prices are usually expressed in local currency:

• US stocks in USD
• Taiwan stocks in TWD

Importantly, par value and stock price are not necessarily related. Par value is just the initial setting when the company is established (often 10 TWD in Taiwan), while stock price is determined by the company’s profitability, growth prospects, and investor expectations. As long as the market is optimistic about a stock, its price will keep rising.

How Much Is One Share? Check the Current Market Price Directly

To know how much a share is worth, the most straightforward way is to look at real-time quotes. Here are actual examples:

Tesla (TSLA) in US stocks:

• January 6, 2023: 1 share at 101.81 USD
• August 2, 2023: 1 share at 254.11 USD
• In just 7 months, the stock price increased over 150%

This shows that the same stock can require vastly different amounts to buy at different times.

Taiwan stock Taiwan Cement (1101.TW): On April 30, 2024, the stock price was 32.10 TWD, which is the price the market was willing to pay for one share at that time.

How Much Is One Lot in Taiwan Stocks? How to Calculate

Now, back to the key question: How much is one lot of stock worth?

Simple formula: Price of one lot (1000 shares) = stock price per share × 1000

Suppose a stock’s share price is 30 TWD, then one lot costs 30 × 1000 = 30,000 TWD.

For most retail investors, directly buying a full lot often requires a large amount of capital, so Taiwan stocks have introduced tiered trading mechanisms:

Whole lot trading vs fractional trading

Whole lot trading (buying one lot or multiples thereof):

• Minimum unit: 1 lot (1000 shares)
• Trading hours: 9:00-13:30 during the day, 14:00-14:30 after hours
• Matching method: order-by-order, transactions are confirmed immediately
• Advantages: high liquidity, quick transactions
• Disadvantages: high capital requirement, may be unaffordable for ordinary investors

Fractional trading (buying less than one lot):

• Minimum unit: 1 share
• Trading hours: 9:00-13:30 during the day, 13:40-14:30 after hours
• Matching method: periodic auction, matched once per minute
• Advantages: lower capital threshold, more accessible
• Disadvantages: lower liquidity, possible delays in execution

Comparing Trading Rules of US Stocks and Taiwan Stocks

The trading environments differ in many aspects. Investors should understand these differences when choosing a market:

Because Taiwan stocks are traded in lots of 1000 shares, the entry barrier for whole lot trading is much higher than in the US. However, the introduction of fractional trading has significantly lowered the entry threshold.

Core Factors That Determine Stock Prices

The price of a stock after converting to TWD is not fixed; it is influenced by multiple factors:

Company fundamentals: Financial health, profitability, business prospects—these are long-term factors affecting stock prices. Companies with solid performance tend to attract more investors, pushing prices higher.

Macroeconomic environment: GDP growth, interest rate policies, exchange rate fluctuations—all impact the overall stock market. During economic booms, stock prices tend to rise; during recessions, they fall.

Market sentiment and expectations: Investor optimism or pessimism plays a powerful role. Negative news, geopolitical risks, global economic events (like pandemics) can trigger panic selling, causing sharp declines in stock prices.

Understanding how these factors interact can help investors make more rational decisions.