The country's two leading stock exchanges, Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) on Tuesday launched mini derivatives contract based on their main flagship indices, Sensex and Nifty.
With this launch, retail investors in the country get to participate in mini derivatives contract having a market lot of five in the Bombay Stock Exchange and with 20 at National Stock Exchange.
Market perception
Perception in the market is that with a smaller size market lot – due to which lower capital outlay and lower trading costs – allows for more precise hedging and flexible trading.
Besides, there could be offers for possible arbitrage between existing Sensex Futures (bigger market lot) and Sensex-mini-Futures.
According to National Stock Exchange, arbitrage is also possible between Nifty derivative contracts and Nifty mini derivative contracts.
