# Revision in tick size for stock options contracts

**URL:** https://tradingqna.com/t/revision-in-tick-size-for-stock-options-contracts/186941
**Category:** F&O
**Created:** [September 24, 2025, 6:02am UTC](https://tradingqna.com/t/revision-in-tick-size-for-stock-options-contracts/186941 "2025-09-24T06:02:08Z")
**Posts on this page:** 1
**Page:** 1

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### Author: ![ShubhS9](https://tradingqna.com/user_avatar/tradingqna.com/shubhs9/32/32667_2.png) [@ShubhS9](https://tradingqna.com/u/ShubhS9)
#### Post date: [September 24, 2025, 6:02am UTC](https://tradingqna.com/t/revision-in-tick-size-for-stock-options-contracts/186941/1 "2025-09-24T06:02:08Z")

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Last year, [NSE revised](https://tradingqna.com/t/tick-size-changed-to-0-01-for-stocks-and-stock-futures-contracts-trading-below-250/166034) tick sizes for stocks below ₹250 and their futures contracts. From November 3, 2025, the same rule will apply to stock options:

- For stocks below ₹250: tick size will reduce from ₹0.05 to ₹0.01

- For stocks at ₹250 or above: tick size remains ₹0.05

The change will apply to all option expiries, with NSE reviewing prices at the end of each month to decide the tick size for the following month.

### Why does this matter?

In trading, the tick size is the smallest price movement allowed for a security. For instance, if the tick size is 5 paise (₹0.05), prices can only move in steps of ₹0.05—₹1.25, ₹1.30, and so on.

Stock options usually trade with wide bid-ask spreads. And because lower-priced stocks often have larger lot sizes, even a small tick adds up to a high trading cost.

For example, Tata Steel trades at around ₹172, with an F&O lot size of 5,500. Its at-the-money option is quoted at ₹2.55–₹2.60. That 5-paise spread equals an impact cost of ₹275 per lot (₹0.05 × 5,500).

From November, with a 1-paisa tick, the spread could be ₹2.55–₹2.56, resulting in an impact cost of ₹55 per lot (₹0.01 × 5,500).

 ![image](https://tradingqna.com/uploads/default/original/3X/1/0/1023c29c2d6444486aeb515de89550cb7f311eac.png)

Smaller ticks mean tighter spreads and lower impact costs for traders.

[Exchange circular](https://nsearchives.nseindia.com/content/circulars/FAOP70382.pdf).