What is an Odd Lot?
How Does an Odd Lot Work?
Investors, particularly individuals, are frequently unable or unwilling toround lots. Nearly all brokers accept odd-lot trades, but some may charge a higher commission for doing so. However, the advent of electronic and online trading platforms has reduced, and in some cases eliminated, these odd-lot premiums.the expense of trading shares in even
Why Does an Odd Lot Matter?
Odd-lot orders tend to be placed by small personal investors rather than institutional traders. Thus, the ratio of odd-lot buying to odd-lot selling is often used to evaluate small-investor sentiment. Trends in odd-lot short sales may also be indicative of negative sentiment by small investors.