Fractional Lots in F&O

General
1

Hi @nithin and all,

F&O trading positions are bound by lots, and that means big chunk of capital gets locked for margin needs, and position sizing systems may also get impacted.

In foreign markets, many fund houses and brokers allow retail traders to take positions in fractional lots. Like if BHEL has a lot size of 10,000 shares, retail traders are allowed to take a fractional position (like 1,500 or 15% of original lot) through some means (at broker/exchange level)

Is there any discussion/progress on this being allowed at all in India (by SEBI/Exchanges?)

Is there any initiative or offerings by brokers like Zerodha on these?

Having this will not only reduce a lot of margin requirements, but will also facilitate a lot of trading which are based on position sizing.

2

Nothing like that, fractional trading is there only for equity shares but not in fno.

SEBI want small retail traders to stay away from fno so there is no discussion about this.

Broker can’t do anything here.

Suggest you to stick to equity if you are not comfortable using leverage and volatility.

3

I also meant “mini-” contracts, like there are the mini-futures with reduced lot size.

Anyways, thanks for the detailed response :+1: