When buying a security for the first time, the ASX prohibits the settlement of transactions that will establish a single holding of less than $500 based on the closing price of that stock, referred to as a "Marketable Parcel".
For your first holding in a security, you cannot submit an order less than $500.00 (excluding brokerage). We recommend you ensure your cash account has a minimum balance of $550.00.
Note: When placing a Market order at a dollar value ($), this order will be rounded down to the nearest whole share.
Place at Market (then limit) buy of BHP for Value of $500
BHP: Current Offer Price $28.55
- Share price + buffer
$28.55 + 5% (buffer) = $29.9775
- Order value divided by share price + buffer
$500 / $29.9775 = 16.67 (round down to whole share of 16)
- Place order for 16 BHP @ $29.9775, estimated value of $479.64
- Note: In this instance the order value is less than $500, If this was your first purchase of BHP this order will fail to be sent into the market.