Zerodha has done a lot for us traders from discount brokerage to raising STT trap issue to recent hedged margin.
I just want if they can raise this issue of reducing the lot size of every contract , i know lot sizes are of Rs 5 lakh ,but i want to know WHY? i mean why not nifty lot size of 25 and bank nifty of 5 ,why not reduce the lot size of every stock derivative to 100. We follow the developed markets right , i think they have lot size of 100 ,so why not us , atleast after this hedged margin SEBI is giving some hopes to retailers
Please @nithin sir can you raise the issue with sebi , or is it too much to ask for ?
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Derivatives by definition are meant to be hedging instruments for institutional investors. Trading is only an offshoot of that.
Lot sizes are big to deter aggressive trading from small traders in FNO market.
From outward it looks good but take example of apple its price is 300 so total contract value comes at 300*100 = 30000usd or 21 lakhs. and there are many stocks above 1000USD.
But yeah lot sizes should not increase considering the illiquid state of markets but universal lot size is not a sollution here, definitely.
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