Why do exchange increases lot sizes in f&o

F&O
1

why do exchange increases lot sizes in f&o? what is the rationale behind increasing the lot sizes?

2

For maintaining minimim contract value. Don’t talk about rationality the only good it does is to dry up already thin liquidity and increase impact costs.

3

and what’s is this minimum contract value, where can i see it for every stock in f&o.

4

Minimum contract value for each F&O contract should be 5 lakhs+ as mandated by SEBI.

1 Like
5

i understood your minimum value point !
BUT ; who decides and how it is decided ? as there are future stocks ranging from 5lakhs per lot to 15lakhs per lot !
so , who decides the lot value ? and on what grounds it is decided ?

6

It is in hands of Exchange.