NSE Hikes Lot Sizes for Bank Nifty & Midcap Nifty — What Traders Need to Know
Starting with the July 2025 expiry, Bank Nifty’s lot size is increasing from 30 to 35, and Nifty Midcap Select from 120 to 140.
It might seem like a routine update, but this move has real implications for traders — especially those dealing in options and multi-leg strategies.
Why now?
SEBI requires all index derivative contracts to maintain a notional value between ₹15–₹20 lakhs. With Bank Nifty and Midcap Select cooling off in recent months, the value per contract dipped below that range.
So, as part of NSE’s scheduled review — based on the average closing prices over the past month — the lot size has now been revised upward to bring contracts back into regulatory compliance.
The change applies only to contracts introduced on or after April 25, 2025 — i.e., July expiry and beyond. April, May, and June series will continue trading with the current lot sizes.
What Does This Mean for You?
1. Bigger Lots = Bigger Capital
A ~17% jump in lot size means more capital per position. This increases not just your profit potential, but also the risk you’re carrying per trade .
2. Margin Hit for Option Sellers
More units per lot = more margin per leg. If you're selling options or managing multi-leg strategies, you'll either need deeper pockets or tighter position control. It could also nudge some traders toward defined-risk setups.
3. Far-Month Spreads Will Be Messy
To avoid confusion during the transition, NSE has paused spread orders between May–July and June–July contracts. Since the lot sizes won’t match, you won’t be able to place both legs as a single order. Traders will need to execute each leg manually — which can lead to wider spreads, slower fills, and less efficient rollovers.
4. Time to Recalibrate Your Strategy
You’ve got a few weeks to adjust. But July contracts will trade differently — so backtest sizing, rework hedging ratios, and check your margin playbook well in advance.
What About Other Indices?
If you trade Nifty 50, FinNifty, or Nifty Next 50, nothing changes for now — their lot sizes stay at 75, 65, and 25, respectively.
But with volatility and price action constantly evolving, they’re not immune to revisions in the future either.
When lot sizes change, your edge lies in how quickly you adapt. July’s contracts will demand sharper sizing, smarter hedging, and better capital discipline. Don’t wait for the market to remind you.