DEFINITION of 'Bunching'

The combining of odd-lot or round-lot orders for the same security so that they can be executed at the same time. Bunching occurs when traders and brokers combine small or unusually-sized trade orders into one larger order. If an order is bunched, all affected clients must agree to the bunching before the order is submitted.


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.

  1. Lot

    In general, any group of goods or services making up a transaction. ...
  2. Round Lot

    A group of 100 shares of a stock, or any group of shares that ...
  3. Odd Lot

    An order amount for a security that is less than the normal unit ...
  4. Block Trade

    An order or trade submitted for sale or purchase of a large quantity ...
  5. Iceberg Order

    A large single order that has been divided into smaller lots, ...
  6. Market

    A medium allowing buyers and sellers of a specific good or service ...
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