The National Stock Exchange (NSE) has announced changes to the market lot sizes for derivative contracts on certain indices, which will come into effect from April 25, 2025. These changes will impact traders and investors dealing in Nifty Bank and Nifty Mid Select index derivatives.
As per the revised structure, the lot size for BANKNIFTY will increase from 30 to 35, while MIDCPNIFTY will rise from 120 to 140. However, the lot sizes for major indices like Nifty 50, Nifty Financial Services, and Nifty Next 50 will remain unchanged, according to an NSE circular released on March 28.
The new lot sizes will be applicable on new contracts starting with the July 2025 expiry, while contracts with April, May, and June 2025 expiries will have the existing lot sizes. In addition, all quarterly contracts available for trading from April 25, 2025, and onwards will be under the new lot size rules.
Derivatives are financial products whose value is derived from an underlying asset such as a stock index, commodity, or currency. The most commonly traded derivatives in the share market are Futures and Options (F&O), which allow traders to speculate on price movements or protect against risks without directly owning the asset.
A lot size refers to the minimum number of units that can be bought or sold in a single derivative contract. Since derivatives are leveraged instruments, traders do not have to pay the contract value in entirety upfront. However, the lot size determines their total market exposure and margin required for trading.
To allow a smooth transition, the day spread order book will not be available for May 2025 – July 2025 and June 2025 – July 2025 combination contracts.
Do you have a news tip for Lakshmishree reporters? Please email us at media@lakshmishree.com.
Source: Moneycontrol.
News Desk
