OK, my question would be, Why? I was an options market maker, broker dealer, and was not restricted from entering odd lot orders. In fact my automated system did it all the time. 1245
i dont know. then firms just told me it is not allowed. whenever i enter odd lots the order will be rejected
Odd lot rule is set up by exchanges to protect retail traders/investors thus prop firms are not allowed to trade odd lots as they are considered professional traders. The only time you will have an odd lot is if you are filled odd lot. You can trade 151 shares but you can not trade 51 i.e. nothing under 100. http://lawprofessors.typepad.com/securities/2007/11/specialist-firm.html
While I can't initiate a trade for less than a round lot, if I'm partial filled less than a round lot I have no trouble trading out of it. I have never needed to add 100 shares to get over 100 total just to get out of an odd lot.