What is Lot Size in Option Trading? – Simple Explanation for Beginners

 Lot size is one of the most important basics you must know before placing any options trade. Here's a clear explanation — without confusion.


🔹 What is Lot Size?

In option trading, you don’t buy/sell single shares. Instead, you buy a lot — which is a fixed number of shares grouped together.


So when you buy 1 lot of Nifty options, you’re actually buying 50 shares (as of 2025).


🔹 Why is Lot Size Important?

Premium is multiplied by lot size

Example: If premium = ₹30 and lot size = 50,

→ ₹30 × 50 = ₹1,500 is needed per lot


Profit/Loss is calculated using lot size

If premium moves ₹10 → Profit/Loss = ₹500 (₹10 × 50)


Margin required depends on lot size + strategy


📊 Current Lot Sizes for Popular Indexes (2025)

Instrument Lot Size

Nifty 50

Bank Nifty 15

Fin Nifty 40

Sensex 15


(Note: Lot sizes may change yearly – always check NSE updates)


📊 Current Lot Sizes for Popular Stocks

Stock Lot Size

Reliance 250

HDFC Bank 550

Infosys 300

TCS 150


❗ Important Tip:

Never place an option trade without knowing the lot size — it directly impacts your capital, profit, and risk.


✅ Always check lot size before calculating strategy cost or maximum loss.


📌 Conclusion:

Lot size is a simple concept but essential for option traders. Learn it early and use it to manage your risk and capital properly.


👉 Follow Finfo Traders for more beginner-friendly trading content.



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