What are options and futures?

Independent financial instruments Derivative instruments that derive their value from underlying assets Government bonds Fixed deposits

What is the lot size in futures and options trading?

The maximum quantity of shares that can be bought or sold The minimum quantity of shares that can be bought or sold The average quantity of shares traded daily The total number of shares available for trading

Which regulatory body in India determines the lot sizes for futures and options?

Reserve Bank of India (RBI) Securities and Exchange Board of India (SEBI) Insurance Regulatory and Development Authority of India (IRDAI) Pension Fund Regulatory and Development Authority (PFRDA)

What was the initial notional lot value fixed by SEBI when futures and options trading began?

Rs. 1 lakh Rs. 2 lakh Rs. 3 lakh Rs. 4 lakh

Why does SEBI revise lot sizes periodically?

To encourage more retail investor participation To align with international trading standards To adjust for drastic changes in share value and maintain the lot value To increase the complexity of futures and options trading

What is the primary reason for trading futures and options in lot sizes?

To increase market volatility To simplify trading for retail investors To standardize markets and ensure consistent trading practices To reduce the influence of institutional investors