Lot definition (2024)

CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please ensure that you fully understand the risks involved. CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please ensure that you fully understand the risks involved.

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What is a lot?

A lot is the standardised number of units of an asset being traded. Often, the actual value of an asset or security means that trading just a single unit isn’t viable. In these cases, traders will use a lot: a set amount of a particular asset that you buy or sell in each transaction. If the position size is not the standardised lot amount, it is considered an ‘odd lot’.

The value of a lot is set by an exchange, or a similar market regulator, and is usually the minimum number of units that you can buy of a particular financial instrument. This regulation means that investors always know how much of an asset they are trading when they open a position.

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.

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

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Lot definition (2024)

FAQs

What is the meaning of the lot? ›

noun. : all the things of a group.

What exactly is a lot? ›

Revised on March 14, 2023. A lot and allot are pronounced the same, but they have unrelated meanings. A lot is used as a pronoun meaning “many” or “a great amount” and an adverb meaning “very much” or “often.”

What does "lot" mean in the Bible? ›

Lot, (Heb. lot), a covering; veil, the son of Haran, and nephew of Abraham ( Genesis 11:27 ). On the death of his father, he was left in charge of his grandfather Terah (31), after whose death he accompanied his uncle Abraham into Canaan ( 12:5 ), thence into Egypt (10), and back again to Canaan ( 13:1 ).

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 means 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. You might wonder why.

What does it mean if a person is a lot? ›

Someone who is “a lot” boils over with their own personality. They may be overwhelming and hard to handle in a social situation. They are a lot of themselves.

What does the phrase a lot mean? ›

: a large number or amount of (things, people, etc.)

What does "says a lot" mean? ›

used to show how much of a particular quality someone or something has: It says a lot for her determination that she practices her cello so often.

What is lot in hebrew? ›

Lot (/lɒt/; Hebrew: לוֹט Lōṭ, lit. "veil" or "covering"; Greek: Λώτ Lṓt; Arabic: لُوط Lūṭ; Syriac: ܠܘܛ Lōṭ) was a man mentioned in the biblical Book of Genesis, chapters 11–14 and 19.

What is the original meaning of lot? ›

From Middle English lot, from Old English hlot (“portion, choice, decision”), from Proto-Germanic *hlutą.

What is the meaning of lot in life? ›

the portion in life assigned by fate or Providence; one's fate, fortune, or destiny.

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 does it mean to be chosen by lot? ›

◊ When someone is chosen by lot or when people draw lots or (less commonly) cast lots to choose someone, each person in a group takes a small object or a piece of paper from a container. One of the objects or pieces of paper is different from the others, and the person who takes the different one is chosen.

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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