In F&O trading, you cannot buy or sell just one share of a stock or one unit of an index. You have to trade in fixed quantities called lots. The number of shares or units in one lot is called the lot size.
How does lot size affect your trading?
Your profit or loss is always calculated based on the lot size. The bigger the lot size, the higher the profit or loss per point movement in the underlying asset. This also means the margin required to enter the position will be higher.
Does lot size vary across contracts?
Yes, every stock and index has its own lot size set by the exchange. Lot sizes are revised periodically, so always check the current lot size on NSE or the Samco app before placing your order.
Can you trade more than one lot?
Yes you can trade any number of lots. Your margin requirement and profit or loss will scale proportionally with the number of lots you trade.
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