Round Lot

In trading, the term round lot denotes a standard amount of securities. Each stock exchange has its own definition for a round lot, and the number of securities in a round lot also changes depending on the security in use.

Typically, exchanges classify a group of 100 shares as a round lot. Multiples of 100 shares are also considered round lots. A lot which contains less or more securities than can be evenly divided into standard round lots is referred to as an odd lot.

Other measurement may apply to other asset types. Some brokers and exchanges require investors to purchase assets in round lots.

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Daniel Dreier is editor and personal finance expert at moneyland.ch.

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