The ASX requires that any transaction establishing a new holding is valued at a minimum of $500, based on the closing price of that stock. This is known as the minimum parcel size. Orders below this threshold will be rejected.
First-time purchases
When buying a security for the first time, your order must be at least $500, excluding brokerage. If you are placing a market order, additional price buffer will be added on top of this amount. The buffer varies based on the security price. Limit orders are not affected by the buffer.
We recommend having at least $550 in your cash account before establishing a new holding.
If your order does not meet the minimum parcel or buffer requirements, you will see an error message at the time of placing.
Subsequent purchases
If your holding in a security falls below $500, for example through a partial sale or a drop in price, your next purchase must bring the total holding back up to at least $500.
For example:
- You buy $700 worth of a stock.
- You sell $350, leaving a holding of $350.
- A follow-up purchase of $100 would be rejected, as it does not bring the holding to $500.
- You would need to purchase at least $150 to meet the requirement.