Buying by Amount or by Number of Shares

When you open the order ticket, you can size your trade in one of two ways: entering a cash amount in your funding currency you want to invest, or entering the number of shares directly. Both methods lead to the same kind of trade — the difference is how you set the size. When you choose to buy by amount, the amount does not need to convert into a whole number of shares. This is where the Fractional Share concept comes in: a piece of a whole share that you can buy with a small amount, even if the full share price is too high for your budget. This lets you invest a precise amount without needing to buy a whole share. Which method suits you depends on your style: if your main concern is "how much will I pay?", buy by amount. If it is "how many shares will I own?", buy by number of shares.

Illustrative example

Suppose you want to invest {workedExampleTradeKwd} (in your funding currency) in a fictional company with the symbol DEMO_TECH. If the price of one full share is high, that amount might only get you a fraction of a share, not a whole one. This is an illustrative example with placeholder numbers to explain the idea only.

Common mistake

Some beginners think they must buy at least one whole share, and that fractional shares are "not real" or worth less. In fact, a fractional share gives you the same relative ownership and dividend rights, proportional to the size of your stake.

Quick check

1. What is the difference between buying by amount and buying by number of shares?

   The first sets the amount paid, the second sets the number of shares directly — because each method starts from a different starting point for the same trade.

2. What happens if your amount is not enough for a whole share?

   You can buy a fractional share — because fractional shares let you invest any precise amount.

3. Do fractional shares give you fewer rights?

   No, only proportional to your stake — because ownership and dividend rights are always calculated by the share of what you own.

This content is educational only and is not investment advice.

Try it: In the order ticket, switch between entering an amount in your funding currency and entering a number of shares (screen: IW-07).