ASX Price Steps
posted on February 25th, 2011 by Bellmont Research Team
At Bellmont we often get asked about the minimum price steps that can be placed into the ASX. The following content is taken from the ASX website and provides an outline of the various price steps for shares at different levels.
Price steps are the minimum price multiples for a security. The multiple depends upon the market price of the security. If BHP is trading at $17.65, its price steps are one cent. You may enter an order at $17.66 or $17.81 etc.
You cannot enter an order at $17.80.5, i.e. 17 dollars, 80 cents and half a cent or $17.80.25, i.e. 17 dollars, 80 cents and quarter of a cent, etc.
Opening and closing prices are an exception. This is due to the formula used to calculate opening and closing prices. The price steps for equities (shares) and redeemable preference shares are:
|Market Price||Minimum Bid|
|Up to 10c||0.1c|
|10c up to $2.00||0.5c|
|$2 and higher||1c|