Recently, many beginners have been confused about trading units in stocks, especially why trading in Taiwan stocks (TWD) is so expensive, while US stocks (USD) are incredibly cheap. The key lies in the difference in trading units. Today, let's talk about this fundamental but often overlooked issue.

Starting with the basics, the stock price is the current trading price of a share, representing how much you need to pay to buy or sell one share. For example, if you see TSMC's stock price is 561 New Taiwan Dollars, that number is the price for one share. US stocks are priced in USD; Tesla might be at $254 per share at a certain time. Stock prices fluctuate in real-time based on buy and sell transactions, which is easy to understand.

But there's a crucial difference that needs clarification. Taiwan stocks have two trading units: "one lot" and "one share," while US stocks only have "one share." Many people don't understand how many shares are in one lot, but it's simple: 1 lot equals 1,000 shares. That means if you buy one lot of Taiwan stocks, you're actually buying 1,000 shares.

How do you calculate the price of one lot? You multiply the per-share price by 1,000. For example, if TSMC's stock price is 561 TWD, then one lot costs 561 multiplied by 1,000, which equals 561,000 TWD. See, this is why ordinary retail investors think Taiwan stocks are very expensive. In contrast, US stocks are traded in single shares; the same TSMC stock might be $95 per share in the US, so buying one share costs only $95, which is just a few thousand TWD.

Because the barrier to trading a full lot is so high, Taiwan introduced fractional trading, allowing investors to buy between 1 and 999 shares, lowering the entry cost. Trading full lots offers good liquidity but requires more capital; fractional trading has lower barriers but slower matching, each with its pros and cons.

Many factors influence stock prices. First, the company's fundamentals—companies with strong performance and profitability naturally attract investors, making their stock prices more likely to rise. Second, the overall economic environment—GDP, interest rates, inflation—these macro factors affect the entire market. Lastly, investor sentiment—good news drives stock prices up, bad news causes declines; sometimes market volatility reflects collective psychological expectations rather than actual fundamentals.

So, if you ask how many shares are in one lot, the answer is 1,000 shares. This is a unique trading unit setting in Taiwan stocks. Once you grasp this basic concept, you'll better understand why the trading costs differ so much between Taiwan and US stocks, and you'll be able to evaluate your investment thresholds and strategies more rationally.