Market Lot

Market lot, also called lot size, is the standardised minimum quantity in which a derivatives contract — futures or options — must be traded on an Indian exchange. All derivative transactions must be multiples of the lot size — partial lots cannot be traded. NSE sets lot sizes for equity derivatives based on the contract value criterion — aiming for a notional contract value (lot size × market price) of approximately ₹5 lakh to ₹10 lakh at inception, with periodic reviews to adjust lot sizes as market prices change. For example, the Nifty 50 futures lot size is 25 units (contract value ≈ 25 × 24,000 = ₹6 lakh at a Nifty level of 24,000), Bank Nifty futures lot size is 15 units, and individual stock futures lot sizes range from 25 to several hundred shares depending on the stock price. In the equity cash market, stocks can be bought or sold in any quantity (even 1 share) — market lot applies specifically to the derivatives segment. For commodity futures on MCX, lot sizes vary by commodity: 1 kg for gold, 30 kg for silver, and 100 barrels for crude oil. Understanding lot size is essential for F&O traders calculating their total margin requirement, position notional exposure, and maximum potential loss — since all these figures scale linearly with the number of lots traded and the lot size of the specific contract being traded.