LOT

12 May 2016 By PDSNET

A unit of trading. In the futures market, one lot refers to one futures or options contract. In the forex market, one lot is equivalent to 100,000 units of a particular foreign currency. Originally on the stock exchange a "round" lot was 100 shares and anything less than that was called an "odd" lot and caused the investor to pay higher dealing costs. With the advent of electronic trading, however, it is possible to buy smaller numbers of shares without incurring additional costs, especially in companies whose shares trade at very high prices.



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