Announcements

As per the Exchange circular, the size of Nifty contracts is being revised from 75 to 50 per lot and here’s what you need to know.

What’s the revision:

1. July 2021 expiry contracts will be revised for market lots
2. All subsequent contracts (i.e. July 2021 monthly expiry and beyond) will have revised market lots
3. All contracts after the July monthly expiry will have a revised lot size of 50
4.The August weekly expiry contracts and all contracts after it will have a revised market lot size of 50
5. All existing NIFTY long term options contracts, with an expiry greater than 3 months, will have a lot size revised from 75 to 50. This is applicable after the expiry of June 2021 contracts (i.e. 25th June 2021)

What it means for you:
To understand this revision better, here’s an example.

Consider that you have position in Nifty beyond the July monthly expiry, In this case, before the 24th of June, you will have to do one of the following:

1. Convert the position into multiples of 50
2. Have position(s) in multiples of 50 - here your current 2 lots (75 x  2 = 150) will then become 3 lots (50 x 3 = 150)
3. Square off the existing position, if it is not in multiples of 50

Remember, if your remaining quantity is not in multiples of 50, you will not be able to square off your position until expiry. So, if you hold the position of 1 lot (quantity - 75) after 25th June 2021, you will be able to only square off 1 lot (quantity- 50) at that time. Thus your remaining quantity = 25, can only be expired and not squared off as per your wish at any point in time.

Kindly plan your trades accordingly. You can also get more details by reading the circular here: https://bit.ly/3uHXOiY

Looking for more information? Learn more about lot sizes and what they mean here.