Fractional share trading involves buying or selling less than one full share of a US stock. Its primary purpose is to allow investors to trade high-priced stocks with a small amount of capital.
Rules for Fractional Share Trading:
1. Eligible Securities: Fractional trading is only available for selected stocks and ETFs. Eligible securities will display a "Fractional" indicator/icon in the top-right corner of the stock's detail page.
2. Trading Hours: Fractional shares do not support pre-market or after-hours trading; they can only be traded during regular market hours.
3. Order Types: Only market orders are supported for fractional share trading.
4. Minimum Amounts: There is a minimum buy limit of $1, while the minimum sell amount is $0.01.
5. Short Selling: Short selling is not supported for fractional share trading.