Trading & Market Structure

Lot Size

Definition

What is Lot Size?

The standard quantity in which a security or contract trades.

Example in practice

One futures contract represents a fixed lot of the underlying commodity.

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The highest price a buyer is currently willing to pay for a security.

The lowest price a seller is currently willing to accept for a security.

The difference between the best available buying and selling prices.

An instruction to buy or sell immediately at the best available prices.

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