Are Odd Lot Trades Predatory? Potentially, Says Credit Suisse

Do odd lot trade execution orders indicate potential predatory behavior on the part of the trader?  Potentially, according to a new white paper released by Credit Suisse. Most stock trades occur in round numbers, 100 shares, 500 shares, etc.  In fact, according to recently-disclosed data from the SEC, only 5% of share volume occurs in odd lots, non-rounded numbers such as 117 or 648, for instance.   Why would anyone use odd lots? Credit Suisse presents three popular theories – some maliciously-minded, some benign. Make sniffing cheaper The report notes that odd lots can be “just another tool that ‘predatory’ traders…