NSE reduces Nifty 50 lot size to 25!

Описание: This video is in Hindi and covers the following topics:

NSE reduces Nifty 50 lot size to 25
Revision also for Financial Services, Midcap
54 Stocks के Lot Size में भी किया गया बदलाव
कौन कौन से Contracts कब कब Change होंगे?
क्यूँ किया जाता है बदलाव?

There is a periodic revision of lot sizes for securities that are in the derivatives market, done by exchanges to maintain their contract value

So basically, if a security falls too much during a stipulated period, then its lot size is revised on the upside to bring back the contract value

Similarly, a security that goes significantly up in a short interval, its lot size gets reduced in the immediate lot revision schedule to bring down the contract value

In the latest lot size revision, National Stock Exchange (NSE) on April said it halved the lot size for trading derivatives contracts for the Nifty 50 index to 25

Lot sizes of Nifty Financial Services or FINNIFTY has been cut from 40 to 25, and that of Nifty Midcap Select or MIDCPNIFTY has been cut from 75 to 50

The lot size of contracts of Nifty Bank or BANKNIFTY has been left unchanged at 15.

Nifty 50

All Nifty contracts i.e. weekly, monthly, quarterly, and half yearly expires available for trading from trade date of April 26, 2024, onwards will be with the revised market lot size

NSE said that there is no revision in market lot of monthly expiry of April 2024 expiring on April 25, 2024, expiry.

The first weekly expiry contract with revised lot size will expire on May 2, 2024. The first monthly expiry contract with revised lot size will expire on May 30, 2024.

FINNIFTY

There is no revision in market lot of existing monthly expiries, expiring on April 30, 2024, May 28, 2024, and June 25, 2024

The first monthly expiry contract to have revised market lot will be July 2024 expiry, expiring on July 30, 2024.

There is no revision in market lot of weekly contracts with expiry date up to July 23, 2024

Weekly Contracts with maturities from August 2024 onwards (i.e. weekly contract with expiry date of August 6, 2024 onwards) will have revised market lots.

MIDCAPNIFTY

There is no revision in market lot of existing monthly expiries, expiring on April 29, 2024, May 27, 2024, and June 24, 2024.

The first monthly expiry contract to have revised market lot will be July 2024 expiry, expiring on July 29, 2024.

There is no revision in market lot of weekly contracts with expiry date up to July 22, 2024. All Weekly Contracts with maturities from August 2024 onwards (i.e. weekly contract with expiry date of August 5, 2024 onwards) will have revised market lots

Of the total 182 stocks with contracts, the lot size of 128 stocks has remained unchanged.

Out of the 54 stocks with changes, 42 stocks will have reduced lot size effective from 26 April, for expiry in May and beyond.

For 6 stocks, the lot size has been increased from the current levels. This set of changes will become effective from 26 April for expires in July and beyond. It is important to note that May and June contracts will maintain the current market lots.

The remaining 6 stocks in the set of 54 stocks with changes will see a decrease in the lot size. The change for this set will take effect on April 26 for expiries in July and beyond.

Capital Requirement: A change in lot size directly affects the capital required to trade a derivative contract. If the lot size decreases, traders with limited capital may find it easier to participate in the market, as they can trade smaller contract sizes. Conversely, an increase in lot size may require traders to allocate more capital to maintain their trading positions, potentially limiting participation for smaller investors.

Liquidity: Lot size changes can impact the liquidity of derivative contracts. A decrease in lot size may attract more traders to participate, potentially increasing liquidity and reducing bid-ask spreads. Conversely, a rise in lot size may lead to decreased liquidity, making it harder for traders to enter and exit positions at desired prices.

Risk Exposure: Lot size changes alter the exposure of traders to underlying assets. A smaller lot size reduces the exposure per contract, allowing traders to manage risk more granularly. On the other hand, a larger lot size increases exposure, potentially amplifying both gains and losses. Traders need to adjust their risk management strategies accordingly.

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