Hi All,
I want to understand the difference between lots, contacts and orders . I was reading a report which said that nse options contracts have fallen by 77% but orders fall for any brokers is not this much it is only 30-40%. Can someone pls clarify this… Also is no of contracts reported on nse same as no of lots. Pls help me understand this.
Hey @Shagun_Agarwal
Lot refers to a minimum quantity that you will have to transact. If the lot size for a particular stock set by NSE is 100, this means that you have to buy or sell the stock in multiples of 100. So, you cannot buy or sell 30 or 40 shares of this stock; it has to be 100, 100, 200, and so on. This is done for simplicity and to maintain standardisation.
Contract refers to an agreement to buy/sell an asset/underlying, like an options contract. One contract can include multiple lots.
Orders are nothing but you placing an order to buy/sell the shares/contracts.
This looks like they must be referring to the activity being reduced i.e they are referring to the people trading in these contracts have reduced.
Previously, there was a higher level of participation in the buying and selling of futures and options contracts. However, increased trading margins and market corrections have led to a decrease in these activities.
If you are new to markets and would want to explore this sections please do check onto this Varsity Link.
Hope this helps you 
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