Job Lot

DEFINITION of 'Job Lot'

A futures contract with a minimum trading unit smaller than the levels required in regular contracts. A job lot can be thought of as smaller contracts for the same underlying of a futures contract. These contracts, or lots, exist to add liquidity to futures exchanges by allowing "smaller" participants to enter the marketplace.

BREAKING DOWN 'Job Lot'

These lots can be any size and differ from futures contract to futures contract. By offering job lots in addition to regular contracts, exchanges aim to make access to the market more accessible to investors with low investment capital but wishing to trade futures, thus adding to pricing and exchange efficiency. For example, western barley future contracts trade in 100-tonne board or round lots and 20-tonne job lots.

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