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.

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RELATED FAQS
  1. How much more will it cost me to buy an odd lot of shares?

    A round lot is a predetermined number of shares of stock - usually 100 shares, while an odd lot refers to any number of shares ... Read Full Answer >>
  2. What's the smallest number of shares I can buy?

    Unlike mutual funds, which can be purchased in fractional units, shares of stock cannot be divided. So, the smallest number ... Read Full Answer >>
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