NSE Revises Market Lot Sizes for BANKNIFTY, MIDCPNIFTY Derivatives

The National Stock Exchange (NSE) of India has announced revisions to the market lot sizes for derivative contracts on select indices, affecting traders and investors dealing in Nifty Bank (BANKNIFTY) and Nifty Mid Select (MIDCPNIFTY) index derivatives. The changes will come into effect from April 25, 2025, and will apply to new contracts starting with the July 2025 expiry.

What’s Changing?

? BANKNIFTY lot size increases from 30 to 35.
? MIDCPNIFTY lot size increases from 120 to 140.
? Lot sizes for Nifty 50, Nifty Financial Services, and Nifty Next 50 remain unchanged.

These changes will apply to new contracts starting from July 2025 onwards. However, existing contracts set to expire in April, May, and June 2025 will retain their current lot sizes.

Why Do Lot Sizes Matter?

A lot size in derivatives trading refers to the minimum number of units that must be bought or sold in a single contract. Since derivatives are leveraged instruments, traders don’t need to pay the full value upfront but must maintain margins based on the contract size.

Impact on Traders & Investors

✅ Increased Exposure: Traders dealing in BANKNIFTY and MIDCPNIFTY derivatives will need to adjust their margin requirements.
✅ Risk Management: Investors must re-evaluate their risk exposure due to larger contract sizes.
✅ No Change for Key Indices: Nifty 50 and other major indices remain unaffected, maintaining stability in trading strategies.

Transition Period & Trading Adjustments

? All quarterly contracts available from April 25, 2025, onwards will follow the new lot sizes.
? Day spread order book will not be available for May-July and June-July 2025 contract combinations.

This change aims to ensure a smooth transition without disrupting existing open positions.

Final Thoughts

With the new lot size adjustments, traders need to reassess their strategies, margin requirements, and risk management. Stay updated with NSE guidelines to navigate the changes effectively in the derivatives market.

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