Even Lot

AAA

DEFINITION of 'Even Lot'

A normal unit of trading for securities or bonds. An even lot purchase of stock is 100 shares, while an even lot purchase for bonds is five shares. A stock transaction that involves less than 100 shares is considered an odd lot and may incur higher trading fees on a fee-per-share basis.

INVESTOPEDIA EXPLAINS 'Even Lot'

Investors may realize cost savings the more shares that they purchase. Institutional investors, for example, trade in much larger lots and can spread costs over more shares. Trading in large even lots results in enhanced market liquidity and minimizes the impact of trading spreads.


Also referred to as round lots or full lots.

RELATED TERMS
  1. Deck

    The number of open orders that a broker is working with at any ...
  2. Actuals

    The physical commodity that underlies a futures contract or is ...
  3. Futures Market

    An auction market in which participants buy and sell commodity/future ...
  4. Customer Type Indicator Codes - ...

    A system that uses four different codes to indicate the types ...
  5. Certificated Stock

    The stock of a commodity that has been inspected by qualified ...
  6. Futures Contract

    A contractual agreement, generally made on the trading floor ...
Related Articles
  1. Insurance

    Futures Fundamentals

    For those who are new to futures but want a solid understanding of them, this tutorial explains what futures contracts are, how they work and why investors use them.
  2. Forex Strategies

    The 10 Riskiest Investments

    Investors seeking high returns must also be prepared for high risk. Here are ten of the riskiest investments available.
  3. Options & Futures

    Was Buffet Right about Derivatives as WMDs?

    Why Warren Buffet described derivatives as weapons of mass destruction, and when can they be helpful or harmful?
  4. Options & Futures

    Examples Of Exchange-Traded Derivatives

    We look at some of the most common exchange-traded derivatives.
  5. Options & Futures

    Advantages Of Trading Futures Over Stocks

    We look at the top eight advantages of trading futures over stocks.
  6. Options & Futures

    Why Trading Coffee Futures Is A Zero Sum Game

    Coffee futures trading is as close to a zero-sum game as you might find in investing. We look at the risks and rewards.
  7. Options & Futures

    Avoid Future Shock By Protecting Your Portfolio With Futures

    Worried about protecting your portfolio of diversified stocks and assets? Using futures with correct strategies can help.
  8. Options & Futures

    Give Yourself More Options With Real Estate Options

    Real estate options have many benefits, including a smaller initial capital requirement.
  9. Options & Futures

    How to Use Commodity Futures to Hedge

    Both producers and consumers of commodities can use futures to hedge. We explain, using a few examples, how to achieve commodity hedging with futures.
  10. Brokers

    OptionsXpress Vs. OptionsHouse: Which One To Pick?

    OptionsXpress and OptionsBroker -- each offers a price mix and set of services suitable for certain investors based on their trade approach and priorities.

You May Also Like

Hot Definitions
  1. Asset Class

    A group of securities that exhibit similar characteristics, behave similarly in the marketplace, and are subject to the same ...
  2. Fiat Money

    Currency that a government has declared to be legal tender, but is not backed by a physical commodity. The value of fiat ...
  3. Interest Rate Risk

    The risk that an investment's value will change due to a change in the absolute level of interest rates, in the spread between ...
  4. Income Effect

    In the context of economic theory, the income effect is the change in an individual's or economy's income and how that change ...
  5. Price-To-Sales Ratio - PSR

    A valuation ratio that compares a company’s stock price to its revenues. The price-to-sales ratio is an indicator of the ...
  6. Hurdle Rate

    The minimum rate of return on a project or investment required by a manager or investor. In order to compensate for risk, ...
Trading Center