There is a substantial risk of loss associated with trading Derivatives . Losses can and will occur. My methods will not ensure profits

Wednesday, October 1, 2014

Good News

Here is some good news for retail traders. NSE is reducing the lot size of Nifty Futures and Options from 50 to 25 with effect from 31 st of October 2014.Here is the NSE Circular on the matter.Thanks to Amber for the link.

This is great news for the novice traders who want to focus on skill development without much damage to their accounts.Those who are currently trading the 50 lot can now experiment with multiple lots. Strategies like part exit and adding to the positions can be tested without much fear and tension.

I was lucky to test this method trading Mini Nifty with a lot size of 20.Otherwise I would have lost 2.5 times more money during the initial stages which could have affected my psychology badly. Later Mini Nifty was discontinued as per SEBI direction. I had made a blog post on that earlier titled RIP Mini

10 comments:

  1. wat about breakeven points when lot size 25?

    ReplyDelete
    Replies
    1. For small lot brokerage can be little higher
      3-4 points. Still it is helpful for the learner in terms of Financial as well as psychological capital

      ST

      Delete
  2. Sir,

    Thanking you and Amber for this useful info.

    S.Karthikeyan

    ReplyDelete
  3. Looks like there is revision of number of lots to the downside for almost all scrips http://www.nseindia.com/content/circulars/FAOP27731.zip

    ReplyDelete
  4. yay yay...grt news st

    rgds
    Kishore

    ReplyDelete
  5. ST sir, Would you recommend increasing acceptable max. loss points (as of now- 10 points) after this revision ?

    ReplyDelete
  6. Hi ST

    Happy Dusshera to you and your Family!!!

    TBP

    ReplyDelete
  7. Dear ST,

    I'm curious to know your strategy. Are you planning to stick with 1 lot or 50 ( 2lots)? (if you don't mind)

    thanks,Tarak

    ReplyDelete
    Replies
    1. Now I am trading with 100 Nos
      Will continue with that for a while and will scale up later

      ST

      Delete

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