Round Lot

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Dictionary Says

Definition of 'Round Lot'

A group of 100 shares of a stock, or any group of shares that can be evenly divided by 100, such as 500, 2,600 or 14,300. A round lot has historically been the smallest order that can be placed through an exchange. However, "round-lot one" now allows for the execution of orders as small as one share on some exchanges. A round lot may also be referred to as a "normal trading unit".
Investopedia Says

Investopedia explains 'Round Lot'

A lot consisting of fewer than 100 shares or a lot that cannot be evenly divided by 100 is called an odd lot. Sometimes odd lots are combined, or "bunched", into round lots to facilitate trading. A mixed lot consists of both a round lot and an odd lot. An order of 198 shares would be considered a mixed lot.

In bond trades, a round lot is usually $100,000 worth of bonds.

Related Definitions

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    Board Lot

    A standardized number of shares defined by a stock exchange as a trading unit. In most cases, this means 100 shares. The purpose of a board lot is to avoid "odd lots" and to facilitate ...
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  • Bunching

    The combining of odd-lot or round-lot orders for the same security so that they may be executed at the same time.
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  • Odd Lot

    An order amount for a security that is less than the normal unit of trading for that particular asset. Odd lots are considered to be anything less than the standard 100 shares for ...
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    • Lot

      In general, any group of goods or services making up a transaction. In the financial markets, a lot represents the standardized quantity of a financial instrument as set out by an ...
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    • Mixed Lot

      A type of order for a number of securities that is not a round (or whole) lot order amount. This type of order is comprised of a round lot order and an odd lot order. A round lot is the ...
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    • Block Trade

      An order/trade submitted for sale or purchase of a large quantity of securities. Also known as "Block Order".
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    • Odd Lot Theory

      A technical analysis theory/indicator based on the assumption that the small individual investor is always wrong. Therefore, if odd lot sales are up - that is small investors are selling ...
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    • Odd Lotter

      An individual investor who buys securities, usually stocks, in odd lots. This is the opposite of someone who buys securities in round lots.
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