Now that we have had around few months trading the hiked lots, what do my fellow traders feel?
SEBI hiked lot size from 2L to 5L to curb retail investors speculating but
This hike is just stupid, speculators will trade any lot size if they are greedy enuf, this will only curb the option for a retail investor hedge against his/her delivery position by a future contract when the market get a bit tricky. basically that's why derivatives are even there.. To promote investment they should reduce lot size not hike it.already we Indians are damn scared of the market this hike has just put fear in amateurs such as me too. in the old days i would have no problem trading futures but now i am switching to commodities.when stocks like Aditya Birla Nuvo, Crompton Greaves ,Dr Reddys Laboratories, LT, INFY, move 10+% in a day coz of news, what will investors do when they are in the wrong side of the futures contracts, which retails investors always will be.One loss like that and no wonder they say market is gamble, one loss like that can wipe their whole capital and also these are not some small stocks they all are top of the line large/mid cap stocks. To curb speculation by retail investors they should reduce the lot size so when the person who is placing the order psychologically will put less lots coz of fear, but now everyone wants to try their hand at least once just because they possibly cannot afford it and they see the profit figures from book trading and then greed takes control,doing so they lose out and will never ever even buy delivery in their life, this is loss of business to everyone and has a negative effect on growth of our country. Is there any thing we can do to explain this to sebi? even i am not comfortable with the lot size to trade in futures so i am already cast aside by the futures market.