As a stock investor, you need to understand stock price fractions as a trading mechanism that helps make your investments more targeted. This is because stock price fractions can serve as a primary reference point in determining stock prices when placing sell or buy orders. Therefore, this article will help you understand stock price fractions.

• Definition of Stock Price Fraction

A stock price fraction is the maximum limit for the increase or decrease in stock prices in stock trading transactions, allowing investors to buy stocks in small quantities. The purpose of stock price fractions is to create an orderly, efficient, and transparent market. Furthermore, changes to stock price fractions are determined by the Indonesia Stock Exchange (IDX) in Regulation II-A-Kep-0023/BEI/04-2016, which serves as a mandatory reference for investors when trading stocks in the capital market.

• Grouping of Stock Price Fraction

The Indonesia Stock Exchange (IDX) has established five stock price fraction groups, each with its own price fraction, based on different stock price ranges. The current groupings are as follows :

With the following explanation:

• The Rp1 price fraction consists of a group of stock prices ranging from Rp50 to <Rp200 per share.
• The Rp2 price fraction consists of a group of stock prices ranging from Rp200 to <Rp500 per share.
• The Rp5 price fraction consists of a group of stock prices ranging from Rp500 to less than Rp2,000 per share.
• The Rp10 price fraction consists of stock price groups from Rp2,000 to <Rp5,000 per share.
• The Rp25 price fraction consists of stock price groups from >Rp5,000 per share.

• Example of Stock Price Fraction Application

For example, the price of PTBA shares as of December 16, 2024, is Rp2,760 per share. Based on the explanation above, PTBA shares are in the Rp2,000 – < Rp5,000 price group with a price fraction of Rp10. That means that if the PTBA share price increases by one tick, it’ll be Rp2,770 per share, and if it decreases by one tick, it’ll be Rp2,750 per share.

That’s all the information you need to know about stock price fractions. Would you like to understand more about stock price fractions and the Indonesian Capital Market?

Join the BISA! (Belajar Investasi Sampai Bisa!) program with Phintraco Sekuritas. Visit Phintraco Sekuritas’ Instagram account to get more information.

Writer: Riska Novi Cahyani

Editor: Salsabila Wardhani & Yundira Putri Rahmadianti