[Fractional Shares Trading Guide] How to Effectively Buy and Sell Fractional Shares? Detailed Explanation of Trading Hours and Fees: A Must-Read for Small Investors

In today's financial market, fractional share trading has become a popular choice for small investors. This article will provide you with detailed information about the basic concepts of fractional share trading, operation methods, trading hours, and related costs.

Definition and Origin of Odd Lots

A fractional share refers to a stock that is less than 1,000 shares (i.e., one lot). Typically, fractional shares arise from situations where the entire order cannot be executed, such as when stock prices fluctuate too quickly or when the transaction quantity does not reach the target price and exceeds the commission price, among other reasons. Additionally, fractional shares may also occur during certain stock allocation processes. Fractional share trading specifically refers to the buying and selling of these stocks that are less than one lot, with a maximum order quantity of 999 shares per transaction.

Odd Lot Trading Time and Rules

Starting from October 26, 2025, investors can conduct fractional share trading during regular trading hours. The specific trading times and rules are as follows:

Intra-day trading:

• Time: 9:00 AM to 1:30 PM
• Commission Method: Electronic commission only (through the Gate trading platform)
• Note: Unfilled or partially filled orders will not be automatically transferred to after-hours trading.

After-hours trading:

• Time: 1:40 PM to 2:30 PM
• Order method: Can be commissioned through electronic means or telephone with human assistance.
• Matching mechanism: Single auction bidding will take place at 2:30 PM.
• Uncompleted transactions handling: Automatically cancelled, not carried over to the next day.

Key Points of Odd Lot Trading Regulations

1. Fractional shares enjoy dividend rights: As shareholders, fractional share holders are entitled to receive corresponding dividends.
2. Fractional shares can receive dividends: The portion that is less than one share is usually converted into cash or sold collectively for distribution.
3. Minimum trading unit: 1 share, the declared quantity must be 1 share or its integer multiples.
4. Trading Flexibility: Fractional shares can be freely bought and sold, suitable for the daily financial needs of small investors.

Guide to Odd Lot Trading Operations

The method of trading fractional shares is the same as trading whole shares; investors only need to switch to “Fractional Share Trading” mode on the order page of the Gate App. When filling in the quantity to buy, the unit will change from “shares” to a stock quantity of 0 to 999.

Regarding transaction fees, the calculation method for fractional shares is the same as that for whole shares, which is 0.1425% of the buying or selling amount. However, different brokerage firms may have a “minimum commission for fractional shares” and promotional rates for electronic orders. The following examples illustrate this:

Assuming the purchase of 200 shares of a certain well-known technology company's stock (current price 1065 yuan): 200 × 1065 × 0.1425% = 303.53 yuan

If the brokerage offers a 50% discount, the actual handling fee is: 303.53 × 50% = 151.77 Yuan

Tips for Trading Odd Lots

Although exchanges continuously optimize the mechanism for trading fractional shares, the trading volume for less popular stocks may be relatively low and may not be executed immediately. Here are a few tips to improve the execution rate:

1. Consolidate Shares: If you hold 700 shares of a certain stock that are difficult to sell, consider buying 300 shares to make up 1 lot, and then sell through whole share transactions.

2. After-hours bidding strategy: In the collective bidding at 14:30, if you are eager to buy, you may consider placing an order at the limit up price; if you are eager to sell, you can place an order at the limit down price to increase the chances of transaction.

Analysis of the Advantages and Disadvantages of Odd Lot Trading

Advantages:

• Low investment threshold, suitable for investors with limited funds.
• Convenient for making small trial investments
• Can be used as a regular investment tool

Disadvantages:

1. Poor liquidity, matching time may be longer
2. The cost of transaction fees is relatively high
3. The trading process is subject to certain restrictions.

Other Investment Options for Young Investors

In addition to fractional stock trading, Contracts for Difference (CFD) are also an investment option that small investors can consider. CFDs only require a small amount of margin and do not require actual stock ownership, focusing only on price fluctuations. Most brokers do not charge additional commissions, only transparent spread fees, and offer better liquidity.

For example, suppose the current price of a certain tech giant's stock is $400, and buying 5 shares requires $2000. However, by choosing CFD trading, assuming the margin requirement is 5%, you only need to invest $100 to participate in the same scale of trading.

However, investors should note that fractional share trading is suitable for long-term holding, while CFDs are more suitable for short-term investments and may involve overnight interest fees.

Conclusion

With the development of financial technology, fractional share trading has become increasingly popular, providing more opportunities for small investors. However, successful investing requires a solid knowledge base and prudent strategies.

Investors should:

1. Assess your own risk tolerance and choose suitable investment products.
2. Master the basic methods of financial analysis and technical analysis.
3. Maintain a rational attitude, avoiding blind following of trends and impulsive trading.

By gaining a deep understanding of the characteristics and techniques of fractional share trading, combined with personal financial goals, small investors are expected to find suitable investment methods in this field, achieving steady asset appreciation.