 |
Investopedia explains 'Bunching'
Bunching can be financially advantageous for investors with orders for less than 100 shares of a particular security, who would otherwise be charged extra fees for the odd-lot order, sometimes called an odd-lot differential. Odd-lot orders are difficult to match, and additional fees are common. Often, bunching occurs on the floor of an exchange when multiple round-lot orders or odd-lot orders are combined into one trade execution.
The term bunching also refers to a pattern that appears on a ticker tape when a series of same-security trades print one after the other.
|
