Lot Size

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Unlike trading in equity, options are traded in lots. You have to buy minimum 1 lot of options which could include many shares.

For example,

• Infosys stock options are traded in the market lot size of 600.
• Nifty Bank Index Options (BANKNIFTY) are traded has the market lot size of 40.

Note:

1. Exchange decide the lot size of the options.
2. An investor could buy shares of a company in the quantity of 1,2, 100 or 1000's. But in case of options, the trader can trade only in lots.