What is a Job Lot?
How Does a Job Lot Work?
Commodity futures contracts are agreements between a buyer and a seller to deliver a specific amount of a commodity (for example, precious metals, oil, corn, etc.) on a future date at a predetermined price. The denomination amounts are typically very large. Job lots are contracts denominated in smaller amounts, making them accessible to more investors.
For example, a gold futures contract may be issued in denominations of 10 troy ounces. This means that larger contracts increase incrementally to 20, 30, and 40 troy ounces. By contrast, a job lot for gold might be issued in two ounce denominations. This means that the underlying quantity of a gold job lot would rise incrementally to four, and six troy ounces.
Why Does a Job Lot Matter?
Personalized Financial Plans for an Uncertain Market
In today’s uncertain market, investors are looking for answers to help them grow and protect their savings. So we partnered with Vanguard Advisers -- one of the most trusted names in finance -- to offer you a financial plan built to withstand a variety of market and economic conditions. A Vanguard advisor will craft your customized plan and then manage your savings, giving you more confidence to help you meet your goals. Click here to get started.