Nse F&o lot size

Below are the NSE F&O Lot Size for the stocks and indices traded on NSE.

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Now the question may arise, what is the need for creating F&O lot size?

Well, if we do not assign a lot size to derivatives, it will be hard to standardize price and value. You might have noticed in the above example that the F&O lot size of Nifty 50 was 75 and for Bank Nifty it was 40. What could be the reason behind this?

Price. Nifty 50 is trading around the 11000 mark whereas Bank Nifty is trading around the 30,000 mark. From this, it is easy to conclude that higher the stock price, lower the lot size.

Also F&O lot size is not fixed and can change over time. Bank Nifty’s F&O lot size came down from 40 to 20. Assigning a lot size makes the work flow systematic and results in reduction of bulky and time consuming trades, in the option market.

f&O-lot-size

The lot size of Nifty 50 is 75. So when you buy a lot of Nifty 50, you get 75 shares of it.

The lot size of Bank Nifty is 20. So when you buy a lot of Bank Nifty, you get 20 shares of it.

So, we can say that, in F&O markets, lot size refers to the total number of contracts you get, when you buy one derivative security.

f&O-lot-size-need

Now the question may arise, what is the need for creating F&O lot size?

Well, if we do not assign a lot size to derivatives, it will be hard to standardize price and value. You might have noticed in the above example that the F&O lot size of Nifty 50 was 75 and for Bank Nifty it was 40. What could be the reason behind this?

Price. Nifty 50 is trading around the 11000 mark whereas Bank Nifty is trading around the 30,000 mark. From this, it is easy to conclude that higher the stock price, lower the lot size.

Also F&O lot size is not fixed and can change over time. Bank Nifty’s F&O lot size came down from 40 to 20. Assigning a lot size makes the work flow systematic and results in reduction of bulky and time consuming trades, in the option market.

Conclusion

  • F&O in F&O lot size stands for Futures and Options.
  • Lot can be defined as a group of commodities.
  • F&O lot size refers to the total number of contracts you get, when you buy one derivative security.
  • F&O lot size can change over time
  • Lot size is assigned for the standardization of price as well as ease of trade.
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