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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.
To combine orders for a security for execution at the same time. A broker may bunch either odd-lot or round-lot orders, but only if all affected clients agree to it. Bunching may be particularly advantageous for odd-lotters (investors with orders for fewer than 100 securities) as it helps them to avoid extra fees they are otherwise charged.