Lots
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Lots
In the context of general equities, this blocks or portions of trades. Can express a specific transaction in a stock at a certain time, often implying execution at the same price (e.g., "I traded 40m in two lots of 10 and four lots of 5.").
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
Lots
1. Pieces of land that are bought or sold as units.
2. Groups of securities or derivatives traded as units, often in groups of 100. Some derivatives, especially exchange-traded funds, set a minimum lot that may be traded; for example, one may only trade a certain ETF in lots of 100. Exchanges and regulators set standard lots, which are used in contracts of trade. This practice means that an investor knows how many securities or derivatives he/she is buying or selling in a given transaction.
2. Groups of securities or derivatives traded as units, often in groups of 100. Some derivatives, especially exchange-traded funds, set a minimum lot that may be traded; for example, one may only trade a certain ETF in lots of 100. Exchanges and regulators set standard lots, which are used in contracts of trade. This practice means that an investor knows how many securities or derivatives he/she is buying or selling in a given transaction.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved