What is a Lot Size?

Each Futures contract has a lot size. The Nifty Future, for example, has a lot size of 50: meaning each Nifty Future contract represents 50 Nifty underlyings.

Similarly, each Equity Future has a lot size. Reliance Futures, for example, has a lot size of 250: so each Reliance Future is  equivalent to 250 Reliance shares.

Therefore, a Futures contract has a value equivalent to its price x lot size. If the Nifty Near Month contract is trading at 5500, then its value becomes Rs. 5500 x 50 = Rs. 275,000.

 

Read more about Futures in our knowledge base section.

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