For derivative contracts on specific indices, the National Stock Exchange (NSE) has announced adjustments to the market lot sizes. The changes will affect traders and investors who engage in Nifty Bank and Nifty Mid Select index derivatives as of April 25, 2025.
The BANKNIFTY market lot will climb from 30 to 35 as a result of the change, and the MIDCPNIFTY market lot will rise from 120 to 140. Nifty 50, Nifty Financial Services, and Nifty Next 50 lot sizes, however, have not been altered, the NSE stated in a letter on March 28.
Existing contracts that expire in April, May, and June 2025 will maintain their present lot sizes, while new contracts beginning with the July 2025 expiry will be subject to the updated lot sizes. The NSE statement also stated that the new lot sizes will be reflected in all quarterly contracts that are available for trade starting on April 25, 2025.
Financial contracts known as derivatives derive their value from an underlying asset, such as a currency, commodity, or stock index. The most popular derivatives are futures and options (F&O), which let traders hedge risks or speculate on price changes without actually owning the asset.
In a single derivative contract, the smallest quantity of units that must be purchased or sold is known as the lot size. Although traders are not obligated to pay the entire contract value upfront because derivatives are leveraged securities, the lot size dictates their exposure and the necessary margin.
To ensure a seamless transition, the day spread order book will not be accessible for combination contracts valid from May 2025 to July 2025 and June 2025 to July 2025.
