Revised Lot Sizes for Index Derivatives from November 20, 2024.

The lot sizes for index derivatives, such as Nifty and Bank Nifty, are often reviewed and revised by exchanges periodically. As the effective date for the revised lot sizes for index derivatives is set for November 20, 2024

Revised Lot size for NSE indices

NSE Lot size changes

Revised Lot size for BSE indices

BSE Lot size changes

Implementation Timeline

The revised lot sizes will apply to all the index derivatives contracts from both the Exchanges (including weekly, monthly, quarterly, and half-yearly) from November 20, 2024

Revisions in the lot sizes for index derivatives can have a significant impact on traders in the following ways:

Changes in Capital Requirements: With an Increase in Lot Size, traders will need more capital to initiate positions. This could make it difficult for small traders or those with limited funds to participate in the market.

Liquidity and Volatility: An increase lot size will impact market liquidity.  larger lot sizes might limit trading to larger, institutional players, which could impact liquidity and increase market volatility.

Scalping and Intraday Trading: Changes in lot size may alter the risk-reward ratio for strategies like scalping. A larger lot size could increase potential profits but also magnify losses.

For further details regarding the existing contracts refer the circular below.

To read NSE circular, click here

To read BSE circular, click here

We encourage you to review these changes and consider their impact on your trading strategy.