Lot definition (2024)

Examples of lots

A lot can refer to any asset class or financial instrument, but the specific meaning of a lot and its application will vary from market to market.

For example, the standard lot size for the stock market is 100 shares – it is the number of shares that are bought and sold in a normal transaction. This is also known as a ‘round lot’. Exchange traded funds (ETFs) are priced in the same way, so that one lot is equal to 100 shares.

The bond market is slightly different, because the lot sizes tend to be issued in far larger sums. For example, the standard lot for US government bonds is $1 million.

In options trading, lots are often standardised across the board. An equity option, for instance, is priced so that each lot is equal to 100 shares of the underlying asset. However, in the futures market lots are called ‘contract sizes’ instead – these vary greatly depending on what type of contract is being traded.

When trading indices for example, the Australia 200 has three different contract sizes. The standard, mini and micro. The standard contract has a lot size of A$25, the mini A$5 and the micro A$1. When the Australia 200 is trading at 6000, the notional value of each contract is as follows:

  • Standard: 6000 x A$25 = A$150,000
  • Mini: 6000 x A$5 = A$30,000
  • Micro: 6000 x A$1 = A$6,000

IG uses lots for CFD trading, where a single contract represents a set quantity of the underlying asset.

A - B - C - D - E - F - G - H - I - L - M - N - O - P - Q - R - S - T - U - V - W - Y

See all glossary trading terms

Lot definition (2024)

FAQs

What is the full meaning of Lot? ›

lot. noun. 1. : a portion of land. specifically : a measured parcel of contiguous land having fixed boundaries and recorded (as on a plat) with the appropriate authority or office (as a registry of deeds)

What exactly is a Lot? ›

Very many or very much or very often is a lot. If you like something very much, you might say, "I like it a lot, or if you have a large amount of homework, you can say, "I have a lot of homework." A lot is correctly written as two words, not alot.

What is the meaning of Lot in the Bible? ›

Smith's Bible Dictionary - Lot

(literally a pebble ). The custom of deciding doubtful questions by lot is one of great extent and high antiquity. Among the Jews lots were used with the expectation that God would so control them as to give a right direction to them. They were very often used by Gods appointment.

What is the concept of Lot? ›

A lot is a plot of land. When you buy a house, you also buy the lot on which it sits. If there's an empty lot in your neighborhood, it means there's a space covered with grass or pavement that's large enough for a house or building to fit there. Another kind of lot is a set or group of items.

What is the best meaning of lot? ›

lot noun (LARGE AMOUNT)

a lot (of) informal. Add to word list Add to word list. A1. lots (of) a large amount or number of people or things: She eats lots of fruit.

What does lots mean in slang? ›

to a very great degree or extent. synonyms: a good deal, a great deal, a lot, much, very much.

What does a lot represent? ›

A lot is the number of units of a financial instrument that's traded on an exchange. A round lot is 100 share units for stocks but any number of shares can be traded and also referred to as lots. A bond lot can vary.

What does "lot" mean in Proverbs? ›

The lot is cast into the lap, but its every decision is from the LORD. The “lot” (“lots” – plural) was an ancient method to determine choices. Casting lots was not a game, but a method to determine God's will and all those involved were apparently willing to accept the outcome.

What does "lot" mean in Ecclesiastes? ›

To accept his lot and rejoice in his toil—this is the gift of God” (Ecclesiastes 5:18–19). ‌What does it mean to “accept my lot?” The term “lot” is translated from the Hebrew term ‌heleq, and it means “portion, share, or territory.” It is similar to the English word “lot” as used to describe property.

What is the meaning of lot in life? ›

Your lot is the kind of life you have or the things that you have or experience. She tried to accept her marriage as her lot in life but could not. Synonyms: destiny, situation, circ*mstances, fortune More Synonyms of lot. 8. countable noun.

What is the origin of a lot? ›

The preposition “lot” comes from the Old English language of the Anglo-Saxons, which lasted to about 1150. It come from the word hlot which meant “a share of”. Hlot evolved to “lot” which means a large number or amount. The phrase “a lot of” was created much later with no known etymology.

Does lot mean fate? ›

fate, destiny, lot, portion, doom mean a predetermined state or end. fate implies an inevitable and usually an adverse outcome.

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