In trading, what is a normal unit defined as, usually consisting of 100 shares?

A normal unit in trading, consisting of 100 shares, is defined as a Round Lot. This terminology is widely used in the stock market to refer to a standard trading quantity. When traders buy or sell in Round Lots, it reflects a conventional practice, making the transaction more streamlined and often more efficient compared to trading smaller amounts, known as Odd Lots, which are any quantities less than 100 shares.

Understanding the concept of Round Lots is essential for traders, as it impacts liquidity, pricing, and trade execution. Buying or selling in Round Lots can also minimize trading costs compared to executing larger transactions with smaller Odd Lots, which may have different trade execution rules and potential price implications.