Lot size
DerivativesThe fixed number of units in one derivative contract, set by the exchange.
In plain terms
You cannot buy one NIFTY future — contracts trade in exchange-defined lots.
1492 terms
Glossary
Every term is defined twice: once the way a filing would put it, and once the way somebody would explain it to you across a table. The second one is usually the one that sticks.
Showing 4 terms
Contract specification
DerivativesAlso called: Contract specifications
The exchange document defining a derivative contract — lot size, quotation unit, tick size, expiry, settlement basis, and for a deliverable commodity the grade and delivery centre.
In plain terms
For a commodity this is the nearest thing to reading an annual report. It tells you what would actually be delivered, where, and in what quantity, which is what the price is a price of.
SME platform
Market basicsThe separate exchange segments for small and medium enterprises, with lighter vetting, far higher minimum lot sizes and much thinner post-listing liquidity than the main board.
In plain terms
SEBI has repeatedly flagged inflated subscription figures, circular funding of applications and post-listing manipulation here. Good companies do list; the base rate is not favourable.
Physical settlement
DerivativesSettlement of a derivative contract by delivery of the underlying shares against cash, rather than by paying the cash difference.
In plain terms
It takes every single-stock future open at expiry and every single-stock option that finishes in the money, while index contracts stay cash-settled — which is why the two behave so differently in the final week. A cheap option finishing marginally in the money becomes an obligation for the full strike price times lot size.