How much is one share of US stocks in TWD? Uncover the fundamental differences between the trading systems of Taiwan stocks and US stocks

When investing in stocks, many people notice a strange phenomenon: Buying and selling Taiwanese stocks often costs hundreds of thousands of NT dollars, while US stocks can be entered with just a few thousand. The reason behind this is not the stocks themselves, but the fundamentally different trading mechanisms of the two markets.

The trading unit determines everything: One lot of Taiwanese stocks vs. one share of US stocks

To understand why one share of US stock is relatively cheap in NT dollars, you first need to understand the core difference: The minimum trading unit for Taiwanese stocks is “one lot” (1000 shares), while for US stocks it is “one share”.

For example, TSMC is listed on both the Taiwanese and US stock markets. In Taiwan, TSMC (2330) has a stock price of 561 NT dollars per share. Buying one lot requires 561×1000=561,000 NT dollars (about 560,000). In contrast, the US version of the same company (TSM) has a stock price of about 95 USD per share, and buying one share only costs 95 USD (about 3,000 NT dollars).

This difference makes ordinary retail investors immediately understand why the entry barrier for US stocks seems so low.

Stock price concept: How much is one share worth?

The stock price refers to the trading price of a stock, representing the amount an investor needs to pay to buy or sell one share in the current market. Stock prices are usually expressed per share and fluctuate based on real-time matching transaction prices between buyers and sellers.

Different countries use different currency units for stocks: US stocks are priced in USD, while Taiwanese stocks are priced in NT dollars. For example, Tesla (TSLA) had a stock price of 254.110 USD on August 2, 2023, and 101.81 USD on January 6 of the same year, with the stock appreciating significantly within just 7 months.

To see how much one share costs, simply check the current market price. There’s no need to consider the face value (which only records the original capital contribution of shareholders), because stock prices are determined by the company’s profitability and investor expectations.

Only Taiwanese stocks have the concept of “one lot”: How to see how much one lot costs?

“One lot” is a unique trading unit in Taiwan, equivalent to 1000 shares. This concept does not exist in US stocks.

To calculate how much one lot of stock costs, just multiply the price of one share by 1000. For example, TSMC’s stock price is 561 NT dollars, so one lot costs 561×1000=561,000 NT dollars.

This cost is too high for most retail investors, so Taiwanese stocks have opened up for “block trades” and “odd lots”:

• Block trades: The minimum unit is one lot, trading hours are from 9:00-13:30 during the day session and 14:00-14:30 after hours, with immediate execution per transaction, high liquidity but higher capital requirements.
• Odd lots: The minimum unit is 1 share, tradable from 1 to 999 shares, during the same day session 9:00-13:30 but after hours from 13:40-14:30, using periodic auction matching once per minute, lower capital threshold but less liquidity.

Overview of trading differences between US stocks and Taiwanese stocks

Understanding why one share of US stock is relatively cheap in NT dollars, here is a complete comparison of the two markets:

The three main factors influencing stock prices

Whether in US stocks or Taiwanese stocks, the fluctuation in the price of a single share is affected by the following factors:

Company fundamentals: Financial health, profitability, and growth prospects are key determinants of stock prices. Companies with good performance attract investors, driving prices up.

Macroeconomics: Overall economic indicators such as GDP, interest rates, and unemployment rates have broad impacts on the stock market.

Market sentiment: Investor psychology and expectations are equally critical. Positive news boosts confidence, while scandals, political instability, or global emergencies (like pandemics) can trigger panic selling.