Odd Lot Theory
Investment Dictionary:
Odd Lot Theory
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Odd Lot Theory
A technical analysis theory/indicator based on the assumption that the small individual investor is always wrong. Therefore, if odd lot sales are up - that is small investors are selling stock - it is probably a good time to buy.
Odd Lot Theory- This states that if odd lot investors are selling, it is likely that buying such stocks at that time will be a profitable venture.
Odd Lot Theory: A historical theory that the odd lot investor, traditionally a small personal investor trading in less than 100 shares at a time, ...
Odd lot theory: An investment theory that contends that as a whole the odd lotters are always wrong. Odd lotters' buying is a sell signal. Odd lotters' selling is a buy signal.
OEX: The symbol for Standard & Poor's 100 Index options.
Odd lot theory was based on the idea that small investors typically traded in odd lots. By dividing the amount of odd lot buying by the amount of odd lot selling over a specific period of time they created the odd lot buy/sell ratio.
 See also: Odd lot, Trading, Market, Sales, Stock
  
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