NSE Reduces Bank Nifty lot size and want to promote options trading. National Stock Exchange announced on friday that bank nifty lot size will change from 25 to 15.
National Stock Exchange only change Bank Nifty lot size and other indices like Nifty, Finnifty will remain same.
Nifty 50 lot size was 50 and it will same as earlier, Finnifty have 45 and Nifty Midcap is 75. This will came into effect after april months.
Bank Nifty monthly lot size will change, weekly will remain 25 as per date available. NSE was to increases future and option volume to sustain market in any week conditions.
From Which Date Bank Nifty Lot Size Will Reduce ?
Bank nifty lot size will reduce from 28 April 2023 of contract July 2023 means from this date July, August, September contracts will be 15.
What are the Changes in Bank Nifty Lot Size ?
1. Changes in far months contracts will happen i.e July 2023 contracts and April 2023, May 2023, June 2023 contracts will be no changes.
2. After July 2023 all monthly contracts of Bank Nifty will be 15 lots.
3. The day spread order book will not be available for the combination contract of May 2023 July 2023 and June 2023 July 2023 expiries
4. Contracts with August 2023 Weekly expiry and beyond will have revised market lot size to 15 as per date.
5. The lot size of all existing BANKNIFTY long term options contracts (having expiry greater than 3 months) shall be revised from 25 to 15 after expiry of June 2023 contracts (i.e. June 30, 2023).
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Positive Effect of Bank Nifty Lot Sizes
Bank Nifty contracts will be most traded from july 2023 because traders will lose small amount of money as compared to earlier because ot size is 15.
More people started options trading in bank nifty as compared to other indices like Nifty and Finnifty.
Earlier if you want to buy bank nifty at 500 then you need 12,500 but it will reduces to 7,500 per lot.
When Bank Nifty Option Trading Started ?
Bank Nifty options trading started on June 4th, 2009, on the National Stock Exchange of India (NSE).
The Bank Nifty is an index that represents the performance of the banking sector in India, and Bank Nifty options allow traders to bet on the movement of this index.
Since the launch of Bank Nifty options, it has become a popular instrument for traders and investors looking to trade the Indian stock market.