Why are futures and options contract in lot sizes? What’s the point? Why can’t the minimum unit be just 1 like shares?
3 Likes
I think you need to go through it , Futures Trading – Varsity by Zerodha
and also you can learn by googling it also , Probably SEBI will like you to quote , if they want to BAN FNO for retail traders 
The point is the same as the reason why you want it.
To ensure that small investors do not participate in the F&O segment. Before the advent of electronic trading, even shares in the equity segment were traded in multiples of certain shares or in lots. In addition to the normal market, there used to exist an odd-lot market where retail could participate. The move to electronic trading helped reduced transaction costs and ensured that transferring and settlement of even smaller units - like single shares, did not seem to be unviable for market intermediaries that relied on a commission. However, this was never extended to the F&O segment, since it was designed for large market participants.
Ofcourse, there are more nuances but this is the broad picture.
same reason why they dont allow covered call without margin.
by having lot size retail investors cannot hedge their portpolio and will be forced to invest via Mutual fund. gov donot like us to manage our own fund.
2 Likes