The National Stock Exchange (NSE) has made changes to the Futures & Options (F&O) lot sizes for four key indices, including the Nifty 50, as announced in an official circular. Lot size refers to the minimum number of shares or contracts that can be traded in a single futures or options contract.
Index Overview
The Nifty Index opened at Rs. 24,916.55 with a slight gap-up opening from its previous close of Rs. 24,894.25. The index reached a high of Rs. 25,088.40, trading almost near the 25,000 level.
The BankNifty Index opened at Rs. 55,834.70, with a gap-up opening from its previous close of Rs. 55,589.25. The index reached a high of Rs. 56,164.20, trading almost near the 56,000 level.
The FinNifty Index opened at Rs. 25,532.20, with a gap-up opening from its previous close of Rs. 26,426.75. The index reached a high of Rs. 26,719.55, trading almost near the 26,600 level.
The Nifty MidCap Select Index opened at Rs. 12,801.55, with a slight gap-up opening from its previous close of Rs. 12,793.60. The index reached a high of Rs. 12,894.10, trading almost near the 12,800 level.
Implementation Timeline
The revised lot sizes for Nifty 50 and other indices will be implemented starting October 28, 2025. Existing contracts will continue with the current lot sizes until the December 2025 expiry, after which new contracts will follow the updated sizes.
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Updated Lot size
The four major indices, Nifty 50, Nifty Bank, Nifty Financial Services, and Nifty Mid Select, have revised their lot sizes according to an official circular.
- Nifty 50: Lot size reduced from 75 to 65
- Nifty Bank: Lot size reduced from 35 to 30
- Nifty Financial Services: Lot size reduced from 65 to 60
- Nifty Mid Select: Lot size reduced from 140 to 120.
Reasons for Revising Lot Sizes of F&O Contracts by NSE
- Standardized Contract Value: Lot sizes are revised to keep the contract value within a standard range.
- Affordability: Adjusting lot sizes makes the contracts more affordable for traders.
- Leverage in Derivatives: Since derivatives are leveraged instruments, traders don’t pay the full contract value upfront, but the lot size determines their exposure and margin requirements.
- Market Efficiency: The revisions aim to improve market efficiency and liquidity.
- Broader Accessibility: Adjusting lot sizes makes contracts more accessible to a wider range of market participants.
Written by Sridhar J
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