The fixed number of underlying units that make up one standard futures or options contract.
Lot size is the minimum tradable quantity for a futures or options contract, fixed by the exchange for each underlying stock or index and revised periodically based on the underlying’s price. Traders cannot buy or sell fractional lots — positions must be taken in multiples of the lot size. Because premium and margin requirements scale with lot size, it directly determines the capital needed to enter a trade.
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