Trading & Market Structure
Lot Size
Definition
What is Lot Size?
The standard quantity in which a securityA tradable financial claim or ownership interest, such as a share, bond, or fund unit. or contract trades.
Example in practice
How This Looks in Practice
One futures contractA standardised exchange-traded agreement to buy or sell an underlying asset at a future date. represents a fixed lot of the underlying commodityA standardised physical good such as gold, crude oil, wheat, or cocoa..
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Related Terms
Trading & Market Structure
Bid
The highest price a buyer is currently willing to pay for a security.
Trading & Market StructureAsk
The lowest price a seller is currently willing to accept for a security.
Trading & Market StructureBid-Ask Spread
The difference between the best available buying and selling prices.
Order TypesMarket Order
An instruction to buy or sell immediately at the best available prices.