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Lot

AnalyticsTrade Team
AnalyticsTrade Team Last updated on 26 Apr 2023

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Lot

A lot is a unit of measure used in the financial markets to describe the quantity of a security or asset that is being traded. It is typically used to refer to a bundle of securities or assets that are bought or sold together. The size of a lot can vary depending on the type of security or asset being traded, but it is usually a multiple of 100. For example, a lot of stocks may be 100 shares, while a lot of bonds may be 10 bonds.

History of the Term

The term “lot” has been used in the financial markets since the early days of trading. It was originally used to refer to a bundle of securities or assets that were bought or sold together. This allowed traders to easily track the quantity of a security or asset that was being traded. Over time, the term has evolved to refer to a unit of measure that is used to describe the quantity of a security or asset that is being traded.

Comparison Table

Security/Asset Size of Lot
Stocks 100 shares
Bonds 10 bonds
Options 100 contracts
Futures 1 contract

Summary

A lot is a unit of measure used in the financial markets to describe the quantity of a security or asset that is being traded. It is typically used to refer to a bundle of securities or assets that are bought or sold together. The size of a lot can vary depending on the type of security or asset being traded, but it is usually a multiple of 100. For more information about lots, you can visit websites such as Investopedia, The Balance, and Investing.com.

See Also

  • Position
  • Margin
  • Leverage
  • Short Selling
  • Spread
  • Pip
  • Lot Size
  • Contract
  • Order
  • Stop Loss

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