What is the meaning of Lot size

Lot size refers to the quantity in which an investor in the markets can trade in a derivative of particular scrip.

For Ex-Nifty Futures have a lot size of 100 or multiples of 100.

Hence if a person were to buy 1 lot of Nifty Futures , the value would be 100*Nifty Index Value at that point of time.Similarly lots of other scrip such as Infosys, reliance etc can be bought and each may have a different lot size.

NSE has fixed the minimum value as two lakhs for an Futures and Options contract. Lot sizes are fixed accordingly which will be the minimum shares on which a trader can hold positions.