What does lot mean in the stock market?
- A lot is the trading unit of a stock or other investment instrument.
- A lot usually means 100 shares or 1 contract.
- For example, an investor who wants to buy 10 lots of THYAO would buy 1000 Turkish Airlines shares.
- In order to calculate lots in the stock market, it is necessary to know the price of the investment instrument you want to trade and how many you want to buy or sell.
- Lot calculation formula is as follows: Lot = Piece / Lot Quantity
- For example, to calculate how many lots you can buy of a stock with a price of 5000 TL and 10 TL, you can use the formula: Lot = 5000 / (10 x 100) = 5
- Thus, you can find that you can buy 5 lots or 500 stocks with 5000 TL.
- The concept of lots in the stock market helps investors determine their trading volumes and risks.
- Also, the stock market has minimum lot sizes for some investment instruments. These amounts are set to ensure the liquidity and order of the market.
- For example, in futures contracts written on the BIST 30 index, the minimum lot amount is 1. This means it is necessary to buy or sell at least 1 contract.