When entering the stock market, many people notice an interesting phenomenon: why is it that buying stocks in Taiwan often costs hundreds of thousands of NT dollars, while in the US stock market, you can get in with just a few hundred dollars? The key difference behind this is—different trading units.
Starting with stock prices: What does the price you see mean?
First, understand that the stock price represents the transaction amount for “one share.” When you look at the trading platform, the number displayed, such as TSMC 561 New Taiwan Dollars, refers to the cost of “one share.”
Stock prices fluctuate in real-time based on bids from buyers and sellers. If the company is profitable and has good prospects, investors will rush to buy, and the stock price will naturally rise; the opposite is also true. The same stock can have very different prices at different times—Tesla was $101.81 per share in January 2023, and by August, it had risen to $254.11.
The core difference between “one lot” in Taiwan stocks and “one share” in US stocks
This is the key to understanding how much one lot of stock costs.
US stocks are straightforward: the minimum trading unit is 1 share. If you buy Tesla, you simply multiply the current stock price by the number of shares you purchase.
Taiwan stocks are different: the minimum trading unit is 1 lot, which equals 1000 shares. In other words, to trade “whole shares” in Taiwan, you need to buy at least one lot, which is 1000 shares.
This results in—
Suppose TSMC’s stock price is 561 NT dollars per share. One lot of TSMC requires: 561 × 1000 = 561,000 NT dollars, about 560,000 RMB. In contrast, the same TSMC stock listed in the US (ticker TSM) has a price of about $95, so buying one share costs only $95 (about 3,000 NT dollars).
Isn’t that a huge difference in threshold?
How retail investors buy Taiwan stocks? Using fractional trading
Because the amount for one lot of stock is quite high, Taiwan introduced a “fractional trading” mechanism. Fractional trading allows buying and selling stocks with fewer than 1000 shares (1–999 shares), starting from just 1 share.
However, fractional trading has a drawback—lower liquidity. This means your buy or sell orders may not execute immediately; you might have to wait a few minutes to match with a buyer or seller. Whole share trading is different, as it involves more participants and faster execution.
Trading Mode
Whole Share Trading
Fractional Trading
Minimum Unit
1 lot (1000 shares)
1 share
Trading Hours
9:00-13:30 / 14:00-14:30
9:00-13:30 / 13:40-14:30
Execution Method
Order-by-order, immediate execution
Call auction, matched once per minute
Liquidity
Strong
Weak
Threshold
High
Low
Quick comparison of trading rules: Taiwan stocks vs. US stocks
Besides the difference in trading units, there are other distinctions between the two markets:
Once you’ve bought in, how the stock price moves becomes the focus. The price of a stock is affected by three aspects:
Company fundamentals: financial health, profitability, growth potential. Good performance naturally attracts investors, pushing the stock price higher.
Macroeconomic environment: GDP, interest rates, inflation, and other macro factors. When the economy is doing well, investor confidence is high, and the stock market tends to perform strongly.
Market sentiment: optimistic or pessimistic investor emotions. Negative news, political fluctuations, or global black swan events can trigger panic selling.
Practical advice
For beginner investors, after understanding how much one lot of stock costs, it is recommended to:
If funds are sufficient, prioritize whole share trading for better liquidity
If funds are limited, use fractional trading to gradually build positions and familiarize yourself with the market
Regardless of how many shares you buy, do your homework—study company fundamentals, monitor macroeconomics, and manage risks
Getting started is simple: register, deposit funds, place orders—just three steps to begin investing. The key is to develop the right mindset: don’t be intimidated by high thresholds, and don’t blindly follow the crowd just because the entry is low.
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How much does one share of Taiwan stock cost? This is a question that many novice investors encounter most often.
When entering the stock market, many people notice an interesting phenomenon: why is it that buying stocks in Taiwan often costs hundreds of thousands of NT dollars, while in the US stock market, you can get in with just a few hundred dollars? The key difference behind this is—different trading units.
Starting with stock prices: What does the price you see mean?
First, understand that the stock price represents the transaction amount for “one share.” When you look at the trading platform, the number displayed, such as TSMC 561 New Taiwan Dollars, refers to the cost of “one share.”
Stock prices fluctuate in real-time based on bids from buyers and sellers. If the company is profitable and has good prospects, investors will rush to buy, and the stock price will naturally rise; the opposite is also true. The same stock can have very different prices at different times—Tesla was $101.81 per share in January 2023, and by August, it had risen to $254.11.
The core difference between “one lot” in Taiwan stocks and “one share” in US stocks
This is the key to understanding how much one lot of stock costs.
US stocks are straightforward: the minimum trading unit is 1 share. If you buy Tesla, you simply multiply the current stock price by the number of shares you purchase.
Taiwan stocks are different: the minimum trading unit is 1 lot, which equals 1000 shares. In other words, to trade “whole shares” in Taiwan, you need to buy at least one lot, which is 1000 shares.
This results in—
Suppose TSMC’s stock price is 561 NT dollars per share. One lot of TSMC requires: 561 × 1000 = 561,000 NT dollars, about 560,000 RMB. In contrast, the same TSMC stock listed in the US (ticker TSM) has a price of about $95, so buying one share costs only $95 (about 3,000 NT dollars).
Isn’t that a huge difference in threshold?
How retail investors buy Taiwan stocks? Using fractional trading
Because the amount for one lot of stock is quite high, Taiwan introduced a “fractional trading” mechanism. Fractional trading allows buying and selling stocks with fewer than 1000 shares (1–999 shares), starting from just 1 share.
However, fractional trading has a drawback—lower liquidity. This means your buy or sell orders may not execute immediately; you might have to wait a few minutes to match with a buyer or seller. Whole share trading is different, as it involves more participants and faster execution.
Quick comparison of trading rules: Taiwan stocks vs. US stocks
Besides the difference in trading units, there are other distinctions between the two markets:
The three major factors influencing stock prices
Once you’ve bought in, how the stock price moves becomes the focus. The price of a stock is affected by three aspects:
Company fundamentals: financial health, profitability, growth potential. Good performance naturally attracts investors, pushing the stock price higher.
Macroeconomic environment: GDP, interest rates, inflation, and other macro factors. When the economy is doing well, investor confidence is high, and the stock market tends to perform strongly.
Market sentiment: optimistic or pessimistic investor emotions. Negative news, political fluctuations, or global black swan events can trigger panic selling.
Practical advice
For beginner investors, after understanding how much one lot of stock costs, it is recommended to:
Getting started is simple: register, deposit funds, place orders—just three steps to begin investing. The key is to develop the right mindset: don’t be intimidated by high thresholds, and don’t blindly follow the crowd just because the entry is low.