Definition of Odd Lot Differential

Odd Lot Differential is an additional fee that may be charged to an investor for the handling of odd lot transactions. (Usually waived).

Applying "Odd Lot Differential" to Securities Exams:

Odd Lot Differential may be charged by a broker dealer to offset the additional expenses incurred by handling odd lots. Buying or selling an odd lot may cause a firm additional handling or execution charges. All quotes displayed in the market place are for round lots. Executing a purchase order for an odd lot may require the buyer to pay a little higher price or may cause the seller to accept a slightly lower price as a result.

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