Nifty Lot size Changed from July

F&O
1

@ShubhS9
From the Exchange circular we have come to know that nifty lot size is going to be changed from July Expiry, but then why long dated Nifty contracts like December Expiry and beyond are still trading at 75 lot size ?
And what will happen after July then, if I hold one Lot of 75 shares Nifty but at that time minimum lot would be 50 only ?

2

Explained in this post.

After the June expiry, the Nifty long-term options contracts (where the expiry is greater than 3 months) will be revised from the current lot size of 75 to 50. The average closing price of Nifty (cash) will be taken to adjust the contract value. [Alternatively, the exchange may do an M2M settlement for the 25 units being reduced from the lot size. We’ll update this post once we get the confirmation.]

3

@ShubhS9 Hi , i have a DEC2021 CE contract , lot size was 75 , now if i add one more lot ( lot size 50) what will happen to my open positions & lot sizes, average price?

4

It will be 125, you can close 100 anytime you want but 25 will stay till expiry. Buy avg should be calculated based on weights only, I believe. (75 * old+50 * new) /125.

1 Like
5

Okay, Thank you .