To make derivative trading democratic and increase liquidity, the National Stock Exchange (NSE) has been cutting the lot size of four major index futures and options contracts from October 28. Main Change: Lot of Nifty 50 has come down from 75 to 65 units, which has reduced the minimum investment of about 13% and has become easy for retail bookies.

The Nifty Bank’s lot has come down from 35 to 30, making it easier for the bookies of the banking sector amidst unstable interest rates. The Nifty Financial Services has also come down from 65 to 60, while the Nifty Mid select contracts have come down from 140 to 120-all these have been made to maintain the estimated price of Rs 5-10 lakh based on the average completion of September. Nifty Next 50 remains stable at 25, retaining its mid-cap level.

This change is in line with the periodic order of SEBI under which the standards of F&O are made standardized and economical, which leads to the curbing over-leverages and attracted new ones at the same time-such as to attract new ones through apps. The NSE circular states, “This increases market efficiency, increases widespread participation without reducing depth, and brokers have been urged to alert customers about open positions.

Change is easy: Old lots will remain till the end of December 30, 2025-weekly/monthly Nifty/Bank Nifty concluding 23 December, quarter/half-yearly closing 30 December. After that, all new contracts – will fall into new sizes of any period. Another problem: Day-spread order book for selected combo such as November 2025-Janvari 2026, which can avoid expiration disturbances.

For traders, mathematics matters: small lots mean low margin (for example, the Nifty 50 has fallen by about Rs 1.5 lakh per lot to about 13%), which has increased the appeal of options in India’s F&O frenzy of Rs 400 lakh crore – which is the largest in the world according to the volume in the world. Nevertheless, experts warns: “Affordable access, but instability has more impact on small portions,” says Nitin Kamath of Zerodha.

As Diwali is closer and index records are breaking (Nifty approximately 25,900), according to Motilal Oswal’s estimate, this change can increase the volume by 10–15%. F&O part of retail – which is already 90% – may increase, but the risk of SEBI remains cautious. For more than 10 million demat holders of NSE, 28 October symbolizes a small revolution: derivatives, decoded to the general public.