lotsize

Lot size refers to the quantity of an asset that is traded in a single transaction. It is a standard unit that determines the notional value of a trade, the capital required to enter the position, and the level of risk.

In stock markets, a standard lot is commonly 100 shares, often called a board lot. Traders may also deal in odd lots (smaller quantities) or in fractional shares in some markets and platforms. The chosen lot size affects liquidity, trading costs, and exposure.

In foreign exchange and contracts for difference (CFDs), a lot represents a standardized amount of the underlying asset. The most common sizes are standard lots (often 100,000 units of the base currency in FX), mini lots (10,000 units), micro lots (1,000 units), and sometimes nano or smaller increments. Notional value and margin requirements scale with the lot size, making larger lots inherently more capital-intensive and risk-bearing.

In futures and options markets, the term often maps to contract size or multiplier. Each contract covers a fixed quantity of the underlying asset, determining the notional value of profits or losses per point movement.

In real estate, lot size describes the area of a parcel of land, typically expressed in square feet or acres. It influences property value, zoning, building potential, and development costs.

Why lot size matters: it drives exposure, leverage, and risk management. Larger lot sizes increase potential gains and losses and may require more margin or capital. Understanding the standard lot for a given market helps traders estimate notional value, costs, and risk for each trade.