I wouldn't consider myself "definitive" but I have not used lots in reference to futures.
For me 1 car = 1 contract. Futures: CME, CBOT, NYMEX, etc.
Lots used more commonly in stocks. Round lot is divisible by 100 (100, 500, 1600). Odd lot not divisible by 100 (64, 50, 34). Mixed lot is an odd + round (198, 521, 256).
Lots are also just groups of things. So if the trader initiated a trade with 4 lots of 5 contracts (20 contracts total) and covered 1 lot, he could still be short 3 lots, with 5 cars each, which he may scale out of at different points of the trade?
The following user says Thank You to bijeremiad for this post:
@MultiCharts keeps calling a tick a point, and it bugs the hell out of me. All throughout the UI it wants me to enter "Points", when really it means Ticks. For some instruments 1 point = 1 tick, like for YM as example. But for many others, say Euro, ES, CL, etc then that is not the case and is very confusing terminology.
1 tick is the smallest increment the instrument can trade. 1 point may be equal to 1 tick, but for example with ES, 1 point is 4 ticks. For oil, 1 point is equal to 100 ticks. So forth.
I think long story short, just know you are right about the terminology and grin.
Due to time constraints, please do not PM me if your question can be resolved or answered on the forum.
Need help? 1) Stop changing things. No new indicators, charts, or methods. Be consistent with what is in front of you first. 2) Start a journal and post to it daily with the trades you made to show your strengths and weaknesses. 3) Set goals for yourself to reach daily. Make them about how you trade, not how much money you make. 4) Accept responsibility for your actions. Stop looking elsewhere to explain away poor performance. 5) Where to start as a trader? Watch this webinar and read this thread for hundreds of questions and answers. 6) Help using the forum? Watch this video to learn general tips on using the site.
If you want to support our community, become an Elite Member.
The following 2 users say Thank You to Big Mike for this post:
I'm curious, Massive l; who are these people you are talking to?
I think the previous guy tried to say CLIP. One can trade multiple contracts/lots/cars a clip. The term is frequently used when scaling/legging in/out. One would still say short 15, but that one will exit in clips of 5.
Last edited by Lornz; March 14th, 2012 at 05:14 AM.
The following user says Thank You to Lornz for this post:
It's just one person and any time I make live trades where I use 'lots', he bashes.
Sort of annoying so I wanted some clarification from the best futures trading site on the internets, futures.io (formerly BMT)!