Alert! NSE Lot Sizes are Changing Again: What Nifty & Bank Nifty Traders Must Do Now
NSE Lot Size Revision: Nifty, Bank Nifty & Key Dates for Traders
Published on October 05, 2025| By Aadarshkumar Jadhav
Learn about the new lot sizes, implementation timeline, and how it affects your trading strategy
Table of Contents
Revised Lot Sizes: Complete Overview
The National Stock Exchange (NSE) has announced significant revisions to the market lot sizes for Futures and Options (F&O) contracts across key indices, including Nifty 50 and Bank Nifty. These changes will be implemented in a phased manner starting October 2025.
Important: These revisions are part of SEBI's periodic review to maintain appropriate contract values. The reduction in lot sizes aims to enhance market participation by making derivatives trading more accessible to retail investors while maintaining market stability.
Explore more insights:
The table below shows the current and revised lot sizes for major indices. Traders will need to adjust their position sizing and margin calculations accordingly.
| Index Name | Current Lot Size | Revised Lot Size | Change | Impact |
|---|---|---|---|---|
| Nifty 50 | 75 | 65 | -10 | ~13% reduction |
| Bank Nifty | 35 | 30 | -5 | ~14% reduction |
| FinNifty | 65 | 60 | -5 | ~8% reduction |
| Midcap Nifty | 140 | 120 | -20 | ~14% reduction |
| Nifty Next 50 | 25 | 25 | No Change | Unaffected |
Implementation Timeline
The transition to new lot sizes will follow a phased approach. Mark these important dates in your trading calendar:
Effective Date: The new lot sizes come into effect from the end of trading day on October 28, 2025.Weekly & Monthly Contracts: New lot sizes will apply to all weekly and monthly contracts expiring on or after January 28, 2026.
Long-term Contracts: Quarterly and half-yearly contracts will transition to the revised lot sizes at the End of Day (EOD) on December 30, 2025.
Key Impacts on Trading
For Retail Traders
Lower capital requirements make F&O trading more accessible. Margin per contract decreases, allowing better position sizing and risk management.
For Institutional Traders
Need to update trading algorithms and risk models. Position adjustments required for long-dated contracts expiring after December 2025.
Market Impact
Expected increase in retail participation and trading volumes. Improved liquidity in options contracts due to lower entry barriers.
Immediate Action Items for Traders:
- Update Position Sizing: Recalibrate your trading strategies based on the new lot sizes
- Review Margin Requirements: Check with your broker for updated margin calculations
- Adjust Trading Systems: Update algorithms, Excel sheets, and trading tools with new parameters
- Monitor Contract Transitions: Be prepared for automatic adjustments in long-term positions
- Educate Your Team: Ensure all stakeholders understand the implications of these changes
Frequently Asked Questions (FAQs)
Why is NSE reducing lot sizes?
NSE periodically reviews lot sizes to maintain contract values within SEBI's prescribed range (₹5-10 lakhs). As underlying index values increase over time, lot sizes need adjustment to keep contracts affordable and maintain market accessibility.
What happens to my existing positions?
This depends on your contract type:
- Short-term contracts (expiring before Jan 2026): These will continue with current lot sizes until expiry
- Long-term contracts (expiring after Dec 2025): These will be automatically adjusted to new lot sizes on December 30, 2025
How will this affect my margin requirements?
Margin requirements will decrease proportionally with the reduction in lot sizes. For example, Nifty 50 margins will reduce by approximately 13% (from 75 to 65 lots). However, always verify exact margin requirements with your broker.
Will option premiums be affected?
Option premiums are determined by market forces and won't be directly affected by lot size changes. However, the reduced contract value may influence trading behavior and liquidity patterns.
When should I start trading with new lot sizes?
For new positions in weekly and monthly contracts, use new lot sizes for contracts expiring on or after January 28, 2026. For long-term contracts, the transition happens automatically on December 30, 2025.
Stay Informed and Trade Smart
Bookmark this page for reference and share with fellow traders. Always verify details with official NSE circulars and consult your financial advisor for personalized guidance.
Disclaimer: This blog post provides general market information based on publicly available data and should not be considered financial advice. Investing in the stock market involves risks, and readers are advised to conduct their own research and consult with a qualified financial advisor before making any investment decisions.
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