Nifty Lot Size reduced to 25-Effective 31st October 2014.

[columbus]

@ZERODHA,

Any plans to reduce the brokerage?

 

[test123]

lol its good for small traders to get trap:lol:

second that :clap::clap::clapping:

 

[rajsingh]

Nov lot still shows 50 as lot size.

 

[ananths]

Nov lot still shows 50 as lot size.

So if we buy 1 lot Nov NF now, it will become 2 on 31st Oct?

 

[kishoregudipati]

Re: Nifty Lot Size reduced to 25, hence more volume-liquidity & less slippage..

In a way this is more beneficial for the exchange and brokers as more lots are traded leading to more money for them. Also see how volatile is BNF since it has a lot size of only 25.

Cheers
Kishore

Here is the inner details, why NSE reduces Nifty Lot size for TJ friends:-

In consultation with Stock Exchanges, it has been decided to
standardize the lot size for derivative contracts on individual securities by SEBI.

Latest rule (circular 2010) is:-

1.If underlying price is >= Rs. 1601 (Nifty belongs to that range) then total contract value must be >= Rs. 2 lakh.

There is no higher limit of contract value when the underlying price is above 1601.
But, to make F&O more affordable NSE tries to keep contract value 2 Lacs to 4 Lacs.

2. The Stock Exchanges shall review the lot size once in every 6 months based on the average of the closing price of the underlying for last one month and wherever warranted, can revise the lot size.

-------------
As the last month (Sept) average of the closing price of Nifty Spot was above 8000. Contract value was double (4 Lakh+) than required 2 Lakh.
NSE decided to reduce Nifty Lot size to half(25) according to the above rule.

It would add more liquidity to the system as volume would be double.
For example those who used to trade 1000 units(20 Lots), would trade later 40 lots(double volume). Hence more liquidity, less slippage. GOOD FOR TRADERS. :thumb:

But, there is a little problem if market remains below 8000 for some time (more than 6 month), only then NSE have to increase the lot size again.
Now it is Bull VS Bear fight again, in Nifty Lot size too. :annoyed: :rofl:

Here vote is only for Bull.... Keep Index above 8000. :thumb:

For beginners, there is also good news, they can try to practice effective position sizing, partial profit booking, averaging with only 2-4 lots (50-100 units).

Also smaller lot size and half margin would attract lot of beginners (option buyers,Intraday Cash Stock traders with low budget ) to Nifty Future Trading. That will also give more liquidity to the system. Hence, less slippage for high volume traders.

Happy Trading.

H.C.

 

[cachu]

Hope brokerage 25 per lot also get reduce else no point ..

 

[SawViper]

I have been trading with RK Global for the last 3 years and I generally average between Rs.2000-2500 in commissions per month. Now my commissions will double. If RKG has no plans to reduce brokerage, I will be migrating to Zerodha from this Nov as soon as my Zerodha a/c is ready.

 

[tradedatrend]

I have been trading with RK Global for the last 3 years and I generally average between Rs.2000-2500 in commissions per month. Now my commissions will double. If RKG has no plans to reduce brokerage, I will be migrating to Zerodha from this Nov as soon as my Zerodha a/c is ready.

WITH Rs. 20 per trade, do you really think your new account would be economical for you ? unless you buy and sell 5-7 lots (now say 10-12 lot) in one go

since you already know ur monthly brokerage cost you around Rs. 2-2.5K, better you can try SAS with rs. 999 per month unlimited trade or rs. 10 per trade

 

[ananths]

WITH Rs. 20 per trade, do you really think your new account would be economical for you ? unless you buy and sell 5-7 lots (now say 10-12 lot) in one go

since you already know ur monthly brokerage cost you around Rs. 2-2.5K, better you can try SAS with rs. 999 per month unlimited trade or rs. 10 per trade

I was also interested about this unlimited trade plan..but this 999 is only for brokerage and other charges remains same as zerodha. If you trade more than 25 trades per month then only its useful.:thumb:

 

[ram2010]

I was also interested about this unlimited trade plan..but this 999 is only for brokerage and other charges remains same as zerodha. If you trade more than 25 trades per month then only its useful.:thumb:

Don't you trade 2 trades per day.

It will come around 50 trades per month.

2 trades -90rs with service tax.

Total 4500 rs per month with zerodha.

If you trade 10 trades per day,

you have to pay almost 10000 rs with zerodha.

This is called discount broking of zerodha.