What is a lot size?
- Author
- CRYPTO PORT Editorial
- Published
- Updated
- Reading time
- 3 min
In short
A lot size is the increment in which order quantities must be expressed. A quantity that does not align with it cannot be submitted. It is distinct from the minimum order size, and an order must satisfy both. The granularity differs by asset and operator.
Key points
- The increment in which quantities must be given
- Quantities off the increment cannot be submitted
- A separate condition from the minimum size
- Granularity differs by asset and operator
Definition
The smallest increment in which an order quantity can be specified. If the increment is 0.001, a quantity such as 0.0015 cannot be entered and must be rounded to the increment.
Crypto assets divide into very small fractions, but order entry does not accept unlimited precision. Fixing an increment keeps matching and display manageable and the system stable — much like the board lot convention in equities.
The easy confusion is with the minimum order size. The minimum is a floor: an order must be at least this big. The lot size is a granularity: an order must land on this increment. Both conditions have to hold at once.
In practice, entry screens usually round for you, so most of the time you never notice. It tends to surface when you try to sell everything and a small remainder is left behind. When you are dealing with odd quantities, the increment rule is usually the explanation.
Watch out for
- · A 'sell everything' attempt can leave a remainder because of the increment
- · Quantities off the increment are rejected
- · Granularity varies by asset and operator — check official guidance