Futures and options (F&O) is a market segment that trades derivatives based on underlying assets such as equities, currencies, or commodities. These contracts include the buyer compelled to acquire and the seller obligated to sell an underlying item at a preset price. Investors can utilise the F&O stock list to hedge against market risks, speculate on market fluctuations, or earn income. There are 191 equities and four indices available for contracts in the F&O category as of February 2023.
What is the Futures and Options Lot Size?
In many aspects, the F&O segment varies from the cash sector (where you purchase or sell the underlying rather than derivatives). One example is that the contracts available for trading in the F&O market have preset lot sizes or are standardised. This implies you cannot specify the quantity of shares you intend to purchase or sell in the contract. For example, if a stock's lot size is set at 50, you must trade contracts with 50 shares, 100 shares, 150 shares, and so on. A contract of 75 shares cannot be bought or sold.
Please keep in mind that many markets provide non-standardised contracts (for example, 75 shares). However, these are frequently referred to as over-the-counter (OTC) items.
The underlying current market price determines the lot size. As stock prices fluctuate, the exchange may adjust the lot size of contracts from time to time. If the exchange takes such a move, it will alert traders in advance. However, once a contract's lot size is set, it cannot be modified until the contract ends.
The contract lot size also impacts the amount of margin money necessary for a trader to trade in securities. As a result, exchanges guarantee that lot size is regulated in such a way that an ordinary trader may trade the security while keeping the market liquid.
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F&O Stock List with Lot Size
According to the volume of contracts exchanged, India has the world's largest derivative market. Futures and options contracts on the Nifty50, the NSE's flagship index, are among the most traded derivatives. Furthermore, derivatives are offered for three more indexes. The lot size for each of them is listed below:
|Nifty Mid Select
|Nifty Financial Services
As stated earlier, there are over 190 stocks that are a part of the F&O segment. Below are some of them with the highest and lowest lot sizes:
Top 10 F&O stocks according to highest lot size:
|Vodafone Idea Limited
|GMR Airports Infra Ltd
|Punjab National Bank
|IDFC First Bank Limited
|Indian Oil Corporation Ltd
|Gail (India) Ltd
|L&T Finance Holdings Ltd
Top 10 F&O stocks with the smallest lot size:
|Page Industries Ltd
|Shree Cement Limited
|Nestle India Limited
|Abbott India Limited
|Maruti Suzuki India Ltd.
|Ultratech Cement Limited
Disclaimer: The data mentioned above is current as of December 2023.
Where Can I See the F&O Lot Size Change?
The stock exchange(s) where a stock is listed announces any changes to the lot size of that stock. The stock exchanges frequently publish circulars, news releases, or announcements on their websites informing investors of the change in lot size.
To get the most up-to-date information on F&O lot size adjustments, go to the websites of stock exchanges like the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). The lot size for each stock is available on the exchange's website by searching for the stock symbol or name. Furthermore, several online trading platforms give information on lot size changes and other important F&O trade news.
Why are Lot Sizes Revised?
The Securities and Exchange Board of India, the stock market's regulating body and regulator, amends and revises the lot sizes regularly. It starts when there is a significant shift in the value of a share, resulting in a significant divergence with lot prices.
How Frequently Does the Lot Size Change?
Stock exchanges can alter a stock's lot size, influenced by factors like trading volume, price fluctuations, liquidity, and market capitalisation. These adjustments aren't on a fixed schedule, and exchanges typically inform traders of any lot size modifications for specific stocks or indices. The frequency of these changes varies, often reflecting evolving market conditions or regulatory considerations. Such adjustments aim to maintain market efficiency and accommodate evolving trading patterns, providing fair and equitable conditions for market participants. Exchanges prioritise transparency by issuing notifications well ahead of any proposed alterations, ensuring market participants can adapt their strategies and positions accordingly.
Understanding Futures and Options (F&O) lot sizes and how they vary is critical for trading derivatives. Lot size modifications are announced regularly by stock exchanges such as the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). They are impacted by variables such as trade volume, price movements, and market liquidity. These modifications, which are not made on a set schedule, strive to preserve market efficiency. Traders looking for information on lot size adjustments can use the stock market app to stay informed and make knowledgable trading decisions in the face of changing market circumstances.
FAQs on F&O Stock List
Beginning October 27, 2023, the NSE will adjust the lot size of Futures and Options contracts on 37 equities, with SEBI mandating contract value to stay between 5 and 10 lakhs.
You can find the lot size of options by checking the stock exchange's website or using trading platforms that display the lot size information for specific stocks or indices.
The lot size in an option chain represents the number of contracts in which derivatives are traded, typically corresponding to a fixed number of underlying assets per contract.
Indices like Nifty 50, Nifty Bank, and others are among the most traded derivatives in the F&O segment due to their liquidity and prominence in the market.