Lot has a particular significance in relation to IG's platform. Here, we define lot in general investing and explain what it means to you when trading with IG.
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A lot is a standardised group of assets that is traded instead of a single asset.
Often, the actual value of an asset or security means that trading a single unit of it isn’t viable. In these cases, traders will use a lot: a set amount of a particular asset that is the amount you buy or sell with each transaction. It means that investors have a standardised contract and always known how much of an asset they are trading when they open a position.
A lot can refer to any asset class or financial instrument. In options trading they are often standardised across the board: an equity option, for instance, is priced so that each lot is equal to 100 shares of the underlying asset.
IG uses lots when CFD trading, where a single contract can be equal to a larger amount of the underlying asset.
Lot sizes at IG vary between different markets and contracts. Some markets have mini or micro contracts, which are a fraction of the standard contract size.
Consequently, the lot sizes of these smaller contracts are a fraction of the standard.
When looking at market information, the value of one point gives you an indication of the lot size for this market.