Nifty Future lot reduction

Nifty is going to reduce its 50 shares per lot to 25 shares per lot,how will it affect the retail trader?

3 Likes

http://www.nseindia.com/content/circulars/FAOP27733.pdf

  • More affordability
  • More Liquidity
  • Less Margin/lot (Almost half)
  • Less slippage
3 Likes

SEBI guideline asks NSE to keep the value of 1 contract at around Rs 2lks. Nifty at 8000 means 1 lot value of around Rs 4lks, and hence the lot size is being reduced from 50 to 25.

@Sdg, when mini-nifty was in, it had a value of around Rs 1lk(nifty was around 6000, so 6000 x 20), and hence SEBI asked Mini nifty to be removed.

Reduction in lot size should definitely increase the liquidity on Nifty.

5 Likes

Nice to hear that. This will surely help many participants to learn trading futures.

Thanks for sharing…

Happy Trading - Mohan

May i know why u r expecting the lot size to get reduced to 25?
A year back NSE removed the mini-nifty(25lot size) contract itself from trading, then y it would introduce it back…

Thank you for the nse circular link.

Thanks Nithin for the clarification.