Nifty Futures Lot Size Changed to 25.

           

          As per NSE circular, Lot size of Nifty futures and options  contracts changed from 50 to 25. Recent bull run in indian equities resulted in huge growth in the value of Nifty,index of national stock exchange.Contract value of Nifty futures was above Rupees Four lakh last month.As per SEBI rules, contract value must be not less than 2 lac.
           
              NSE commenced Nifty futures trading since 2000.Initial lot size was 200.Nifty futures contracts are available in three month contracts - current month,next month and far month.Value of Nifty futures is calculated by multiplying lot size with index value.Sharp rise of Nifty index value has reduced the retail participation in the contract trading due to the high margin requirement. Latest revision in lot size will reduce the margin requirement also.Margin to trade in Nifty futures was  around Rs.34000 last month.It will be near to Rs.17000  in new contracts.
   
          Nifty futures are used for hedging ( no profit no loss situation ) and arbitrage by institutional investors. But, Most of the retail investors use it for speculation.NSE expect more participation in Nifty futures due to the reduced Lot size.