Round Lot

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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 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 TERMS
  1. Mixed Lot

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  2. Odd Lotter

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  3. Odd Lot Theory

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  4. Odd Lot

    An order amount for a security that is less than the normal unit ...
  5. Bunching

    The combining of odd-lot or round-lot orders for the same security ...
  6. Lot

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