Futures & options
What is Lot size (F&O)?
Also called: Contract size
Hinglish mein padhein: F&O mein lot size kya hota hai?
F&O contracts trade in fixed lots. SEBI requires each contract's value to be at least ₹15 lakh at introduction.
The minimum contract size was raised in November 2024 to reduce retail speculation. Lot sizes are revised periodically as prices change.
One lot of an index future therefore exposes you to lakhs of rupees of market risk.
Related terms
- FuturesA futures contract is an agreement to buy or sell an asset at a set price on a future date. Both sides are obliged to settle.
- MarginMargin is the money you must keep with your broker to take a position, especially in intraday and F&O trades where you control more than you pay.
- Derivatives (F&O)Derivatives are contracts whose value depends on an underlying asset such as a stock or index. In India they are mainly futures and options (F&O).