The "daily Call" From Option Alpha: Options Trading | Stock Options | Stock Trading | Trading Online

Hey everyone. This is Kirk here again from Option Alpha and welcome back to the daily call. Today, we’re going to help you understand the difference between an odd lot versus a round lot with some examples. I’ve seen a lot of definitions out there of the differences when orders go through with regard to stocks or futures or options contracts and the differences between odd and round lot orders. And so, there's no one definition of it, but here's generally the concept around these. Round lot orders are orders that are easily disseminated across multiple parties in the market. Order types for stocks would be orders of 100 shares, 200 shares, 250, 500, 1000 shares, something that is a generally round number of orders kind of rounded to a nearest grouping of trades that can easily be exchanged with another party in the market. If you’re trading 100 shares and someone else is trading 100 shares, it's very easy to make those two parties come together and create a filled order. An odd lot might be something like 97