Glossary/ Market mechanics
Market mechanics
Lot size
The fixed quantity in which a derivative contract trades. You cannot buy half a lot.
Where this comes up
Lessons that use the term in context, which is usually more useful than the definition on its own.
- Delta, in plain language — How much the option moves when the underlying moves.
- Sizing a position properly — From capital and stop distance to quantity — the whole calculation.
Nearby terms
Bid-ask spread · Fill · Liquidity · Long · Margin · Mark to market