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Price Fraction and Auto Rejection at Indonesia Stock Exchange

Updated: Feb 27

One of the efforts of the Indonesia Stock Exchange (IDX) in encouraging the implementation of regular, fair and efficient stock trading is by applying price fraction and auto rejection.


These two things are closely related to the activities of selling offers and buying bids in the regular and cash market.


KAF ETRADE online trading system

Price Fraction


A price fraction is a unit of price change that is used in making a bid or offer for a stock.


The following is a table of price fractions according to the last price* of the stock.

Last Price

Price Fraction

<Rp200

Multiple of Rp1, maximum of Rp10 from last price

Rp200–500

Multiple of Rp2, maximum Rp20 from last price

Rp500–2.000

Multiple of Rp5, maximum Rp50 from last price

Rp2.000–5.000

Multiple of Rp10, maximum Rp100 from last price

>Rp5.000

Multiple of Rp25, maximum Rp250 fromlast price

*Last price is the last price of the stock that is updated in real-time based on customers' bids and offers from pre-opening to post-closing of the market.

Auto Rejection


Auto rejection is the automatic rejection of a bid or offer because it exceeds a specified price limit or number of shares.


The following is a table of auto rejection by price reference*.

Price Reference

Price's Auto Reject

Lot's Auto Reject

Rp50–200

More than 35% above or below the price reference


Rp200–5.000

More than 25% above or below the price reference


>Rp5.000

More than 20% above or below the price reference


All prices

Below Rp50 or does not meet the price fraction

More than 50,000 lots or 5% of the number of shares listed on the IDX (whichever is smaller)

*The price reference is usually the opening price or the previous price (the closing price of the previous trading day if the opening price is not established).

Application of Price Fraction and Auto Rejection


ABCD stock have a reference price as well as a last price of Rp1,985 per share with a fraction of Rp5 and a maximum change of Rp50.


Therefore, customers can enter a purchase request of Rp1,985, Rp1,980, Rp1,975, to Rp1,935.


If the share price rises, the changes will be Rp1,990 → Rp1,995 → Rp2,000 → Rp2,010 (last price goes into fraction Rp10 with a maximum change of Rp100) → Rp2,020 → and so on.


When the last price reaches Rp2,020, customers can enter sell offers of Rp2,020, Rp2,030, Rp2,040, up to Rp2,120.


The maximum level of price change can be applied as long as it does not exceed the auto rejection percentage limit. The movement of ABCD shares on that trading day will not be more than 25% above or below Rp1,985, which is >Rp2,480 (upper auto reject) and <Rp1,490 (lower auto reject).


 

Disclaimer: The content is made for educational purposes, not a recommendation to buy or sell a particular stock. PT KAF Sekuritas Indonesia is licensed and supervised by the Financial Services Authority (OJK).



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