Business and Personal Finance Dictionary

# A B C D E F G H I J K L M N O P Q R S T U V W X Y Z 

• UNIT OF TRADING
  
  When you buy stocks, bonds, options and commodities futures, it's typical to buy in a particular volume or for a particular dollar value, called a round lot or a unit of trading. For example, stocks are usually traded in lots of 100 shares and bonds in multiples of $1,000. However you can buy an odd lot, which is more or fewer shares or bonds, at any time. The drawback is that the commission on an odd lot may be more than the commission on a round lot.
  
  Back