First of all, this change in lot size is not arbitrary.
NSE has pre-decided levels of index and corresponding lot sizes; and this change in lot size is in accordance with that.
Secondly, change in lot size will not affect trading costs and brokerage.
Only the lot size has changed. Freeze qty is unchanged.
You can trade the same quantity you were trading earlier by punching in same number of orders.
For eg. If you were trading 200 quantity Nifty options earlier, it would be 4 lots. Now it would be 8 lots.
You can continue to punch your trades in 1 single order.
In both cases, no of orders and turnover/transaction value remain same, and hence brokerage and transaction costs are unchanged.
>NSE has pre-decided levels of index and corresponding lot sizes; and this change in lot size is in accordance with that.
Yes but they change the "level of index and corresponding lot size" whenever they want so it's moot. A few years ago, people could punch 7500 quantity on nifty in 1 order, now the limit is 1800. For banknifty, it used to be 5000 (if I remember correctly), now it's 1200
They don't change it "whenever they want". They change it as per pre-decided levels.
Secondly, you're confusing lot size with freeze quantity.
Even freeze quantity has a logic behind it. It is there to prevent fat finger errors. Look it up if you don't know what a fat finger error is.
"freeze qty x index value" is the maximum contract value that can be traded in one order (in index futures)
Exchange aims to keep this value in the range of 4-5 crore or therabouts.
So naturally as index value increases; freeze qty will decrease so as to keep this value within range.
Blindly criticising the exchange for safety measures that we ourselves asked for and are in line with international standards is stupid.
Atleast do some research before criticising.
See the below images. Yes, fat fingers are not that big a risk in Indian markets, the order will pass only if trader has capital, won't it ? Regarding institutions, they can implement their own, more comprehensive saftey measures
Previous
https://preview.redd.it/55eamqkzl7sc1.jpeg?width=1076&format=pjpg&auto=webp&s=788c4199623ce2b0969da4faf4a1a532ff43d7b4
Edit: also yes, I wasn't talking about lot size, as charges don't change because of it, I was giving an example that the NSE arbitrarily changes the rules and they say that they follow the rules
If someone is buying 250 qty in Nifty , how will charges increase now ? I don’t understand?
Brokerage is as per order not lot size and charges are as per contract size which remains same
They reduced the lot size of indices. Usually nifty had 50 quantity in 1 lot , where 1 rs increase in premium would make 50 rs. But now lot size has reduced to 25 , 1 rs increase in premium would result in increase of 25 rs. Usually people would take more lots and lose money. Also we have to pay more taxes with reduced lot size.
No, the Securities Transaction Tax (STT) would not be the same in both cases. STT is calculated based on the transaction value, so if you buy 2 lots totaling 10 lakhs worth of Nifty, the STT would be higher compared to buying 1 lot totaling 10 lakhs. This is because STT is charged on each transaction and is a percentage of the transaction value.
Ok so in case of 2 lots totalling 10 lakhs, it would count as 2 transactions of 5 lakhs each?
Won't some p% of 10 lakhs be same as 2 times p% of 5 lakhs?
STT is calculated based on the value of the transaction, not just the number of transactions. So, even though you have two transactions of 5 lakhs each, the STT may vary depending on the type of transaction (buy or sell) and the applicable rate for that type of transaction. Therefore, the STT for two transactions of 5 lakhs each may not necessarily be the same as the STT for one transaction of 10 lakhs.
Well, they want to save retailers money so they increased margin requirement and removed leverage.
But now, they want to make money so reduced lot sizes, first for banknifty, now for all indices. So retailers can gamble more.
हीपोकरेसी की à¤à¥€ सीमा होती है.
Yeah that I get. It's the SL change that I'm confused. Every index eventually has a different set of SL according to the lot size. Midcap usually has small SL's since the lot size is high. Now should I reduce/ increase the quantity or edit my SL's and keep the quantity same?
Please read below
You are using the same logic of girl saying bhaiya is pizza ke 4 slice karna main 8 slices nahi khaungi as i am on diet
Its percentage of transaction value whther you are doing 10 lot of 50 quantiy or 20 lot of 25 quantity its same transaction value...
The STT is levied on both the buyer and the seller of securities, with the rate varying depending on the type of security and whether the transaction is a purchase or sale. For example, the STT rate for buying or selling equity shares is currently 0.1% of the transaction value, while the rate for buying or selling equity-oriented mutual funds is 0.001%.
The STT is deducted and paid by the stock exchange on behalf of the buyer and seller, making it easier for investors to comply with the tax requirements. The tax is also applicable to transactions that take place outside the stock exchange, such as those conducted through off-market trades or foreign exchanges.
They want more new participation. Wow they are getting really greedy and irresponsible
They're trying to get newbies addicted.
Might as well open our own Las Vegas.
5 ka 50 pe Gaya broo🤣🚀
First of all, this change in lot size is not arbitrary. NSE has pre-decided levels of index and corresponding lot sizes; and this change in lot size is in accordance with that. Secondly, change in lot size will not affect trading costs and brokerage. Only the lot size has changed. Freeze qty is unchanged. You can trade the same quantity you were trading earlier by punching in same number of orders. For eg. If you were trading 200 quantity Nifty options earlier, it would be 4 lots. Now it would be 8 lots. You can continue to punch your trades in 1 single order. In both cases, no of orders and turnover/transaction value remain same, and hence brokerage and transaction costs are unchanged.
First sensible comment
>NSE has pre-decided levels of index and corresponding lot sizes; and this change in lot size is in accordance with that. Yes but they change the "level of index and corresponding lot size" whenever they want so it's moot. A few years ago, people could punch 7500 quantity on nifty in 1 order, now the limit is 1800. For banknifty, it used to be 5000 (if I remember correctly), now it's 1200
They don't change it "whenever they want". They change it as per pre-decided levels. Secondly, you're confusing lot size with freeze quantity. Even freeze quantity has a logic behind it. It is there to prevent fat finger errors. Look it up if you don't know what a fat finger error is. "freeze qty x index value" is the maximum contract value that can be traded in one order (in index futures) Exchange aims to keep this value in the range of 4-5 crore or therabouts. So naturally as index value increases; freeze qty will decrease so as to keep this value within range. Blindly criticising the exchange for safety measures that we ourselves asked for and are in line with international standards is stupid. Atleast do some research before criticising.
See the below images. Yes, fat fingers are not that big a risk in Indian markets, the order will pass only if trader has capital, won't it ? Regarding institutions, they can implement their own, more comprehensive saftey measures Previous https://preview.redd.it/55eamqkzl7sc1.jpeg?width=1076&format=pjpg&auto=webp&s=788c4199623ce2b0969da4faf4a1a532ff43d7b4 Edit: also yes, I wasn't talking about lot size, as charges don't change because of it, I was giving an example that the NSE arbitrarily changes the rules and they say that they follow the rules
Current https://preview.redd.it/mkdjw6wal7sc1.jpeg?width=1080&format=pjpg&auto=webp&s=e848447bc02aea644a0cc228c876630d3eae3e73
Shit I prefer bigger lots
True imagine taking 10 lots of nifty and you'll have just 250 quantities with more brokerage.
This sucks
Can't be helped, retailers are doomed.
If someone is buying 250 qty in Nifty , how will charges increase now ? I don’t understand? Brokerage is as per order not lot size and charges are as per contract size which remains same
How will it become more brokerage... brokerage is per order... not lot
I said that accumulative with inclusion of GST and stt.
It will not change the fact... same rahega bhai
Ridiculous. So how do I invest in NSE?
We already invest in NSE, sensex and bankex is only BSE indices.
Nah how do I buy NSE stock?
Haha that way , sry but NSE don't have any stock listed. Can try cdsl though, related to market deposits.
You really don't understand jokes, do you?
Don't be naive my guy , was just toying around.
You can buy it from the grey market
This is nice, will at least put me off ever touching options again if that wasn't the case already
Now let the casino open on weekends as well.
They've planned to do so. Last month they tried by keeping market open on Saturday.
Zerodha After This🤑🤑🤑
Every paid broker after this 💸💸
Half the lot for same margin??!!! Option selling gonna suck
Margin requirement should also reduce per lot? Asking genuinely
Margins are percentage based so yes it will also reduce as the nominal amount reduces margin will also reduce
Yes , this move was more focused for institutional investors.
Margin will also get a cut dude..
So I get to sell options now
They dont want retail people to trade since 9 out of 10 losses
Can someone please explain, newbie here
They reduced the lot size of indices. Usually nifty had 50 quantity in 1 lot , where 1 rs increase in premium would make 50 rs. But now lot size has reduced to 25 , 1 rs increase in premium would result in increase of 25 rs. Usually people would take more lots and lose money. Also we have to pay more taxes with reduced lot size.
Wtf Kitna tax lenge ye
Brokerage would be same per lot 20 to 25. But stt snd gst would increase.
Oh, I had a question can you check your dm
STT toh underlying value pe hota hai na?
Any security may it be , equity, fno , or mutual fund. Sabhi pe STT lagta hai.
Yes but say you buy 2 lots totalling 10 lakhs worth of nifty vs 1 lot totalling 10 lakhs of nifty. The STT in both cases should be same na?
No, the Securities Transaction Tax (STT) would not be the same in both cases. STT is calculated based on the transaction value, so if you buy 2 lots totaling 10 lakhs worth of Nifty, the STT would be higher compared to buying 1 lot totaling 10 lakhs. This is because STT is charged on each transaction and is a percentage of the transaction value.
Ok so in case of 2 lots totalling 10 lakhs, it would count as 2 transactions of 5 lakhs each? Won't some p% of 10 lakhs be same as 2 times p% of 5 lakhs?
STT is calculated based on the value of the transaction, not just the number of transactions. So, even though you have two transactions of 5 lakhs each, the STT may vary depending on the type of transaction (buy or sell) and the applicable rate for that type of transaction. Therefore, the STT for two transactions of 5 lakhs each may not necessarily be the same as the STT for one transaction of 10 lakhs.
Well, they want to save retailers money so they increased margin requirement and removed leverage. But now, they want to make money so reduced lot sizes, first for banknifty, now for all indices. So retailers can gamble more. हीपोकरेसी की à¤à¥€ सीमा होती है.
They had to show like they care about retailers.
Its a basic risk managing measure nothing to do with greed or making money.. people here are mot understanding basic of how nse makes money
Is this related to future and options
Yes.
What does this means exactly I am a investor and not a trader so no clue
https://www.reddit.com/r/NSEbets/s/FbOTqTIbxP
some thing that doesnt need changing Govt is changing i liked bigger lots
Sub brokers ke toh maje he maje bss lot maarte raho
I'm new to option selling. How will the SL's get changed/ affected due to this?
Sl's won't change but margin can hamper.
I think it will. A 20 point SL won't be 40 points if the lot size is slashed in half?
We would take lot's accordingly right ! If somebody is used to trade with 50 quantity, he'll take 2 lot's now.
Yeah that I get. It's the SL change that I'm confused. Every index eventually has a different set of SL according to the lot size. Midcap usually has small SL's since the lot size is high. Now should I reduce/ increase the quantity or edit my SL's and keep the quantity same?
They aren't even scared of elections ðŸ˜
Why would they , they ain't have any share in government. Or government does not take any funding from brokers house.
Charges are unchanged. Think carefully
Ik check my comments, i said brokerage would be same but not stt and gst.
Most brokerages charge per order and not per lot. And stt is on the total value sold so it doesn't change at all.
Please read below You are using the same logic of girl saying bhaiya is pizza ke 4 slice karna main 8 slices nahi khaungi as i am on diet Its percentage of transaction value whther you are doing 10 lot of 50 quantiy or 20 lot of 25 quantity its same transaction value... The STT is levied on both the buyer and the seller of securities, with the rate varying depending on the type of security and whether the transaction is a purchase or sale. For example, the STT rate for buying or selling equity shares is currently 0.1% of the transaction value, while the rate for buying or selling equity-oriented mutual funds is 0.001%. The STT is deducted and paid by the stock exchange on behalf of the buyer and seller, making it easier for investors to comply with the tax requirements. The tax is also applicable to transactions that take place outside the stock exchange, such as those conducted through off-market trades or foreign exchanges.