Definition
The minimum quantity of shares in a futures or options contract.
Understanding Lot Size
Lot Size is an important concept in stock market trading. Understanding this term will help you make better trading decisions and communicate effectively with other traders and financial professionals.
Key Points
- Basic Definition: The minimum quantity of shares in a futures or options contract.
- Category: This term is commonly used in Derivatives
- Relevance: Essential knowledge for traders operating in Indian stock markets
Practical Example
When trading on NSE or BSE, you'll encounter lot size regularly. For example, understanding this concept helps you analyze market conditions, make informed decisions, and manage your trading positions effectively.
Related Concepts
To fully understand lot size, you should also be familiar with related trading concepts. Check out the related terms in the sidebar for a comprehensive understanding of this topic.