Want to Start Investing in Stocks Know the term lot

Are you starting to invest in stocks? It's a good idea to know in advance some of the terms that are often used in the investment world. Especially for investing in stocks or stocks, you will be familiar with certain terms. At first it may seem foreign, but in principle this term will make it easier for investors.

One of the terms you hear most often is lot. In principle, the lot is the official unit in conducting stock transactions. To buy or sell shares, investors do not sell them in pieces but in lots.

In addition to the various terms, as an investor you also need to be wise in looking at the condition of stock price movements. By recognizing stock market conditions, you can do the right analysis. The right analysis will give you a greater chance to benefit from stock investment.

What is a Lot?

The term lot is the most basic term in investment, especially in the stock world. Basically, lot is the type of official and standard unit used in buying and selling shares on the IDX. Can be termed as units of degrees Celsius to measure temperature and units of meters to measure distance.

For stock investment, you must at least buy or sell 1 lot of stock. One lot can be interpreted as a sheet or it can also be interpreted as a unit of money. For example for forex, then 1 lot can mean 100,000 dollars. However, for investment in Indonesia, now 1 lot means 100 shares.

The regulation came into effect on January 6, 2014. Previously, 1 lot was defined as 500 shares of stock. For example, a stock costs 2,600 per share, so to buy 1 lot you have to spend 260 thousand rupiah. A lot of lots in the transaction will later affect the amount of loss and profit.

What is Odd Lot?

In stock investment, apart from lots there is also an odd lot term known on the IDX. As the term implies, odd means odd or not even. If a lot means 100 shares, then an odd lot is a lot that has an even value of 100 shares.

Lot is the value of the stock in multiples of hundreds. So for example, you have 150 shares, then the shares can be called odd lors. If the IDX decides that 1 lot means 100 shares, why is there an odd lot term?

Odd lot occurs when companies enter into corporations in order to increase stock ownership. This can happen in stock investment. Usually odd lots occur when rights issue. However, odd lots can only be sold in the negotiated market and cannot be sold in the regular market.

What is BEI?

The IDX or the Indonesia Stock Exchange is a place for stock buying and selling transactions for investors and stock players. Apart from being a place for stock investment to occur, the IDX also makes regulations including the definition of lots in stock transactions. Until now in Indonesia 1 lot means 100 pieces of stock.

Every company listed on the IDX can sell its shares to investors. Later the stock can also be referred to as the issuer. The IDX determines the amount of 1 lot of stock, one of which is based on the accessibility of investors, whether it is too high to invest or still within reach.

IDX is also authorized to provide an assessment of the decrease in the number of stock in 1 lot. To grant this authority, the IDX requires intermediation and costs. So if 1 lot of stock in stock investment is reduced, the operational costs charged to investors will be high because the frequency of transactions increases.

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Anyone Can Invest

Do you think Investment is only exclusive to certain people? That's not the case. With advances in technology and easier access to information, now anyone from any background can invest in stock.

To meet the stock investment requirements, you must at least open an account. You must be at least 17 years old and have investable funds. In order for daily life to continue well, the funds used for investment are cold funds or other than daily needs.

You can start investing in stocks without having to wait for a large capital. Moreover, currently 1 lot means only 100 pieces. So you can start saving stock regularly, starting with buying only 1 lot. This policy from the IDX helps you as a novice investor so that you can start investing with a capital that is not too large.

How to Become a Stock Investor

The earliest way to start investing in stocks is to equip yourself with information and knowledge in investing. After that the other thing you need to do is prepare an investment fund. We recommend that you start investing when your daily needs are met and use cold money.

It would be better if you allocate investment funds regularly every month. If you meet these conditions, you can open an investment account. This investment account can be created on any of the selected securities platforms. Make sure the security has an official license.

To create a stock investment account, you need to prepare personal documents such as NPWP, KTP, savings book and stamp duty. Also prepare funds for investment. You don't need to force the amount of investment funds and you can start from a small nominal.