Lot Size

Question

Lot Size

The number of shares of the underlying in an Option contract is called Lot size.

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Answer 1 · 2018-05-30

Unlike trading in equity, options are traded in lots. You have to buy minimum 1 lot of options which could include many shares.

For example,

Infosys stock options are traded in the market lot size of 600.
Nifty Bank Index Options (BANKNIFTY) are traded has the market lot size of 40.

Note:

Exchange decide the lot size of the options.
An investor could buy shares of a company in the quantity of 1,2, 100 or 1000's. But in case of options, the trader can trade only in lots.

Answered on 2018-05-30

Lot Size

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