Beware of Lot size changes - March 2009

[columbus]

Nice view.....
Then why these exchanges didnt change NIFTY lot size. Everyone in mkts doesnt come with lakhs of rupees and not everyone is a son of a rich dad.
People start low and make their fortunes starting from a low margin.
I think anyone doin part time Trading in mkts gets an excellent opportunity to trade in OPTIONS Compared to FUTURES with Minimum RISk factor and if you triple the lot size , that man who has the ability to play well in mkts gets Knocked out and will only play in Cash segment which gives too small profits.

Anyways , people who have Moolah will still play as Nifty Lot size is still same. Stockfuture trading will become minimal i think. Volumes already so low and more moves like these will kill the remaining.
Thats my point a stark contrast to yours
You are an expert and am a beginner so i understand the need for small lot sizes.

CB,

When NIFTY was trading sub 2000 the lot size was 100 ,few years back.
I hope NSE authorities will change Nifty lot size to 100 if nifty trade
around 1800,I guess.

 

[bandlab2]

stupid move. you can trade multiples of 1 but not fraction of 1. if stock price has gone down, you can trade more lots. there is no need to increase the lot size. volumes will go own in several stocks and this effects the brokers

 

[columbus]

stupid move. you can trade multiples of 1 but not fraction of 1. if stock price has gone down, you can trade more lots. there is no need to increase the lot size. volumes will go own in several stocks and this effects the brokers

Retail investors will shy away from stock futures,making already thin
volumes ,thinner.Anyway ,who cares for retail investor?

 

[mahesh2007]

This move shall turn traders into super scalpers.

 

[sriniurs]

This is probably the most stupidest thing i have come across.Honestly its not just about margins,take a look at ifci 15k shares...even today though i know lot of ppl can afford 10 lots of ifci,they would rather prefer 5 lots(position-sizing)...15k shares would scare the hell out of most traders as all traders are prone to mistakes,again a wrong trade with 5000 shares is much better than a wrong trade with 15000 shares...
this is perhaps the dumbest thing.

ifci lot size was 31500 just 2 years back

 

[arnav_rulz]

Nice view.....
Then why these exchanges didnt change NIFTY lot size. Everyone in mkts doesnt come with lakhs of rupees and not everyone is a son of a rich dad.
People start low and make their fortunes starting from a low margin.
I think anyone doin part time Trading in mkts gets an excellent opportunity to trade in OPTIONS Compared to FUTURES with Minimum RISk factor and if you triple the lot size , that man who has the ability to play well in mkts gets Knocked out and will only play in Cash segment which gives too small profits.

Anyways , people who have Moolah will still play as Nifty Lot size is still same. Stockfuture trading will become minimal i think. Volumes already so low and more moves like these will kill the remaining.
Thats my point a stark contrast to yours
You are an expert and am a beginner so i understand the need for small lot sizes.

Well i totally agree with you... But there are some rules regarding FnO that are followed. Like the minimum value of a lot of a stock in FnO cannot be less than 2 lakhs. This Rule was made When Futures and Options were started and not right now...

If you remember last year also Government changed some lot sizes but at that time they reduced the lot size because their value exceeded the maximum value set for a lot...

Although within the process only the government has made some major mistakes... but the basic reason for the changes is because of the rules made.

If the market keeps falling and one day most of the value of lots may even come to 20k(present value of satyam lot) and when ppl get used to that... even if the government changes the lot value to 1lakh @ that time, even then ppl will usually cry therefore some rules have to followed ...

 

[rensenin]

This move shall turn traders into super scalpers.

Probably...I think they still need to have a strategy and a fast finger. Not all of them would become a good scalper.


regards
ren

 

[Capricorn]

Assinine move on the exchanges part. But then what else do u expect ? It will not only drive the smaller traders out of FNO, causing a drying up of liquidity and leave the large traders trying to slash at each others throats. No small fry available remember.

The option market never really took off thanks to absence of market makers, and this would be the last nail in the coffin for option market.

 

[arnav_rulz]

The lot size changes are decided by the NSE. The Government of India is not involved in this.

Stop blaming the Government for everything under sun.

Oops yeah Sorry Aadat hai ... My fault hehe

 

[arnav_rulz]

The lot size changes are decided by the NSE. The Government of India is not involved in this.

Stop blaming the Government for everything under sun.

See the lot sizes may be decided by the Nse, But when Futures and Options came, it was Sebi who decided the maximum limit and minimum limit i.e 4lakh and 2lakh for the lot size.

And when after some time the Value of these lots go up and down, it was Sebi's Pressure that result in Nse changing the Value of Lot... So in a way as Sebi is a Part of Govt of India, Therefore Govt is involved because this is a matter of Public interest.

cheers