Bunching

Bunching

The combining of odd-lot or round-lot orders for the same security so that they may be executed at the same time.

Notes:

Brokers cannot bunch orders together unless all the affected investors have agreed. The advantage of bunching is that brokers can save clients who have issued small orders from additional fees by combining orders so that they form a round-lot.

See also: Odd Lot, Round Lot

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Bunching

Describes the act of traders combining round-lot orders for execution at the same time. Bunching can also be used to combine odd-lot orders to save the odd-lot differential for customers. Also used to refer to the pattern on the ticker tape when a series of trades for a security appear consecutively.