How to Trade Contracts and LotsIn the share market, the financial instruments are traded in Lot size. A lot size refers to a standard amount of a particular tradable asset that is allowed to trade in the stock exchanges.The size of a lot may vary depending on the price of a share of a particular company, or it may be country-specific.Generally, they are traded in a lot size of 100 but if in case a share is costly then it may be sold in a lot size of 10 also.In the share market, shares are purchased, held, and sold in a fixed lot size.There are two types of lot sizesRound lot \u2014 A collection of a hundred stocks or financial entities is termed as a round lot.Odd lot \u2014 A group of stocks that are less than a hundred in numbers is called an odd lot.A trader can buy any number of lot sizes according to his capital and risk-taking capabilities. If someone buys 1200 shares, then they are collectively termed as 12 round lots. And if someone buys 1050 shares, then they are called as a 10 round lot and one odd lot for 50 shares.Different financial entities are traded in different lot sizes. For example, bonds are traded in lots of $10,000 having face values of $1000 each.Futures and options are traded in a lot of 100 shares; however, the price of the underlying asset is fixed for the lot size of the contract.And finally, forex is traded in 3 different lot-size viz- micro, mini, and standard.Now for buying and selling lots and contracts, there are certain things that a trader needs to do but before doing that, let us first know about types of contracts.There are two types of contracts \u2014 one is forward contracts, and another\u2026<\/p>","protected":false},"excerpt":{"rendered":"
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