The National Stock Exchange (NSE) has announced changes to the market lot sizes for derivative contracts on certain indices. The adjustments, effective from April 25, 2025, will impact traders and investors dealing in Nifty Bank and Nifty Mid Select index derivatives.
Under the revision, the market lot for BANKNIFTY will increase from 30 to 35, while MIDCPNIFTY will see a rise from 120 to 140. However, the lot sizes for key indices like Nifty 50, Nifty Financial Services, and Nifty Next 50 remain unchanged, NSE said in a note on March 28.
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The revised lot sizes will apply to new contracts starting with the July 2025 expiry, while existing contracts expiring in April, May, and June 2025 will continue with their current lot sizes. Additionally, all quarterly contracts available for trading from April 25, 2025, onwards will reflect the new lot sizes, the NSE note added.
Derivatives are financial contracts whose value is derived from an underlying asset, such as a stock index, a commodity, or a currency. Futures and options (F&O) are the most common derivatives, allowing traders to speculate on price movements or hedge risks without directly owning the asset.
A lot size refers to the minimum number of units that must be bought or sold in a single derivative contract. Since derivatives are leveraged instruments, traders do not have to pay the full value of the contract upfront, but the lot size determines their exposure and the margin required.
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The day spread order book will not be available for May 2025 – July 2025 and June 2025 – July 2025 combination contracts to facilitate a smooth transition.
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