Unit of trading

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Unit of trading

Unit of Trading

1. One thing that may be exchanged. For example, one dollar is a unit of money.

2. See: Lot.

unit of trading

The minimum quantity of a security required for regular trading purposes. The unit of trading for most stocks is 100 shares. Also called trading unit, unit.

Unit of trading.

When you buy stocks, bonds, options and commodities futures, it's typical to buy in a particular volume or a particular dollar value, called a round lot or a unit of trading.

For example, stocks are usually traded in lots of 100 shares, or multiples of 100 shares, and bonds in multiples of $1,000. For some preferred stocks, known as ten-share traders, the unit of trading is ten shares.

Any variation from the standard unit of trading is known as an odd lot.

References in periodicals archive ?
Saudi Arabia and Oman already have trading units, and Abu Dhabi National Oil Co said earlier this month it may seek partners as it expands into trading.
Schenck is to be promoted to deputy CEO and co-run the bank's investment banking and trading units alongside Garth Ritchie.
Also, this decision has been made with respect to the Action Plan for Consolidating Trading Units, an initiative by stock exchanges in Japan to unify trading units at 100 shares.
The decision also has been made with respect to the Action Plan for Consolidating Trading Units, an initiative by stock exchanges in Japan to unify trading units at 100 shares.
It has trading units and representative offices on both sides of Suez.
Mr Osborne said banks must be set up so their High Street branches and savings and loans would not be damaged if their trading units ran into trouble.
will consolidate the standard sizes of trading units for shares on its bourse to 100 and 1,000 by April 2012, TSE officials said.
Although no industry standard exists, these are the preferred minimum trading units, ranging from $1 million to $5 million.
According to the existing requirements for the minimum trading unit and amount in paired block trades, investors must either buy or sell at least 1,000 trading units or must have their trading amount exceed NT$30 million if they engage in the block trade of a single security.
Global Banking News-December 19, 2013--RBC considering spinning off proprietary trading units
Use of multiple stock trading units requires review: Yosano
The ED defines (paragraph 5, page 2) the market value of a financial instrument as "the product of the number of trading units of the instrument times the market price - the amount at which a single trading unit of the instrument could be exchanged in a current transaction between a willing buyer and a willing seller, other than in a forced liquidation sale.