Finance Desk – New rules in the futures and options (F&O) trading market in India have changed how trading happens. Previously, traders had different days to trade various stock indexes like Bankex, Fin Nifty, Bank Nifty, Nifty, and Sensex. Now, only Nifty and Sensex will have weekly expiries, which simplifies trading but also reduces opportunities.
Experts think these changes might lower the total trading by 10% to 30% because traders, especially those using automated systems, need time to adjust. Also, with fewer weekly expiries, there might be more ups and downs in prices at the end of each month.
Another big change is the increase in the minimum amount needed to start trading in index options, from Rs 5-10 lakh to Rs 15 lakh. This higher cost could discourage many smaller investors from trading, possibly reducing the number of trades by 20% to 30%.
Lot sizes have also increased, which means traders have to buy or sell larger quantities than before. For example, the Nifty lot size has gone up from 25 to 75, and the Bank Nifty lot from 15 to 30. This can make it harder for small investors to trade.
Other factors might also slow down trading, like the Reserve Bank of India’s upcoming meetings, holidays in the US markets, and the usually quiet trading month of January.
