Options7 min read
Options trading basics: what a call and a put actually are
A call is the right to buy, a put is the right to sell, and a premium is what that right costs. Here is what each side of an option contract is signing up for.
Options and futures
Lot sizeek contract mein kitne shares
The fixed number of units in one futures or options contract, set by the exchange; you can trade only in multiples of this quantity.
Lot size is the minimum quantity of the underlying in one derivative contract. You cannot buy one Nifty option; you buy one lot, which covers a fixed number of units set by NSE. If the Nifty lot is 75 and an option's premium is ₹100, one lot costs ₹7,500 and every one-point move in the premium changes your position by ₹75. For SBI, a lot might be several hundred shares, so one futures contract controls a position worth several lakh rupees. Exchanges revise lot sizes periodically to keep contract values within a target range, and SEBI raised index lot sizes in 2024, so always check the current figure on the exchange website. Lot size is why F&O losses feel sudden: the same ₹5 move that costs ₹50 on ten shares costs thousands on a lot. Size your risk in rupees per lot before entering.
Related terms
Lessons that use this term
Options8 min read
Lot size, expiry and margin: the three things every F&O beginner gets wrong
One Nifty lot is not one unit. Expiry is not just a date. Margin is not the price. Get these three straight before your first F&O order.