Order Lot Size

Order lot size, or step size, defines the minimum and maximum quantity of an asset that can be traded in a single order. It also dictates the increments by which order quantities must increase, ensuring they align with the exchange's technical requirements.

This parameter is crucial for risk management, as it prevents orders that are too small to be economically viable or too large to be absorbed by current liquidity. In crypto, lot sizes are often configured to prevent dust orders, which are tiny amounts that clutter the ledger.

Exchanges enforce these rules at the protocol level to optimize matching engine performance. Traders must calculate their position sizes according to these constraints to avoid rejected orders.