Glossary
Lot size: meaning, example and why it matters
The fixed number of shares or contract units that must be bought together. In an IPO it is the minimum number of shares you can bid for; in futures and options it is the contract size set by the exchange.
Worked example
If a stock future's lot size is 500 and the price is ₹200, one lot has a contract value of 500 × ₹200 = ₹1,00,000. In an IPO with a lot of 75 shares at ₹140, the minimum application is 75 × ₹140 = ₹10,500.
Illustrative numbers for explanation only. They are not market data, a forecast or a suggestion.
Why it matters
Lot size sets the smallest quantity you can trade or bid for, which decides the minimum money needed.
Related terms
See it in practice
Frequently asked questions
Who decides lot sizes?
For futures and options the exchange sets and revises them. In an IPO the issuer sets the minimum bid lot in the offer document.
Is this page investment advice?
No. Lot size is explained in general terms with illustrative numbers. Market Dekho is not a SEBI-registered Research Analyst or Investment Adviser.
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Start learning free →Educational content, not investment advice. Market Dekho is not a SEBI-registered Research Analyst or Investment Adviser. Spotted a mistake? Email marketdekho01@gmail.com.