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.

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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? ›

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

What does lot mean 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? ›

1. quantifier. A lot of something or lots of it is a large amount of it. A lot of people or things, or lots of them, is a large number of them.

What does means a lot mean? ›

Short answer- The phrase "It means a lot to me" is an expression used when something or someone is very important and is something you appriciate.

What is you lot slang for? ›

“You lot” means “all of you”. Because English has lost its second person singular, so times it is necessary to emphasise that the “you” is plural. “Come here, you lot” summons a whole group, not an individual.

What does the phrase a lot mean? ›

⚡️ Quick summary. A lot, which is often misspelled as alot, means “a large number or quantity” or “very much,” and it can be used as a noun or an adverb. Allot is a verb that means “to portion out” or “to set aside a share or portion of something, such as money or time, for a specific purpose.”

What does it mean if someone 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 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 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 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 is the simple meaning of lot? ›

lot noun (LARGE AMOUNT)

lots (of) a large amount or number of people or things: She eats lots of fruit.

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.

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.

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