F&O Lot Size

F&O lot size stands for futures and options lot size. It represents the minimum number of shares per futures or options contract. More specifically, the value of the futures or options contract is calculated by multiplying the lot size by the share price. The lot size is set by SEBI for every security.

The F&O lot size is important because it determines the value of the futures or options contract. There’s also another reason. Lot sizes are designed to be typically high so that everyday retail investors think twice before engaging in speculative trading.

Yes, F&O lot size varies from contract to contract because of the cap set by SEBI. The notional value of an options or futures contract must be above Rs. 5 lakhs. This was the new limit introduced by SEBI in 2015. Before that, the notional value was set above Rs. 2 lakhs. Thus, the lot size of a futures or options contract for a specific stock will vary based on its share price, which should be above Rs. 5 lakhs when multiplied by the lot size.