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Options 7 min readMar 15, 2026

NIFTY Options Lot Size, Margin & Capital Required in 2026

Exact lot sizes, margin requirements, and minimum capital needed to trade NIFTY, BANKNIFTY, FINNIFTY, and MCX options in 2026. Updated with current SEBI regulations.

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Current Lot Sizes for Major F&O Instruments (2026)

Lot sizes are reviewed quarterly by SEBI. These are the current lot sizes:

InstrumentLot SizeApprox. Value per Lot
NIFTY 5075 units~₹16-17 lakh (notional)
BANKNIFTY35 units~₹18-19 lakh (notional)
FINNIFTY65 units~₹14-15 lakh (notional)
MIDCPNIFTY75 units~₹8-9 lakh (notional)

SEBI update (Nov 2024): SEBI increased lot sizes for NIFTY and BANKNIFTY to reduce retail speculation in high-risk weekly options. NIFTY went from 50 to 75 units; BANKNIFTY from 25 to 35 units.

Capital Required for Options Buying

Option buying requires only the premium amount — no additional margin.

Example: NIFTY options buying capital

Option typeTypical premiumCapital per lot (NIFTY 75)
ATM option (expiry week)₹80-150₹6,000 - ₹11,250
ATM option (next week)₹180-280₹13,500 - ₹21,000
OTM option (1 strike)₹30-70₹2,250 - ₹5,250
Deep OTM₹5-20₹375 - ₹1,500

Minimum capital to start buying NIFTY options: ~₹10,000-15,000 (enough for 1-2 ATM lots with some buffer for losses).

Recommended starting capital for options buying: ₹50,000-1,00,000 (allows for proper position sizing where each trade is 10-20% of capital).

Capital Required for Options Selling

Options selling requires SPAN + Exposure margin. This is significantly higher than buying.

StrategyApprox margin required
Naked NIFTY CE/PE sell (1 lot)₹90,000 - ₹1,20,000
NIFTY Straddle (sell CE + PE)₹1,20,000 - ₹1,60,000
Bull Put Spread (sell + buy)₹20,000 - ₹35,000
Iron Condor₹30,000 - ₹50,000

Minimum capital for options selling: ₹2,00,000+ (naked selling is extremely risky; hedged strategies need less but still significant margin).

Recommended for options selling: ₹3,00,000-5,00,000 (allows proper position sizing and buffer for margin calls).

BANKNIFTY Margins

BANKNIFTY is more volatile and more expensive:

StrategyApprox margin required
Naked BANKNIFTY CE/PE sell (1 lot)₹1,00,000 - ₹1,40,000
ATM option buying (1 lot, 35 units)₹4,000 - ₹8,000

MCX Commodity Margins

CommodityLot sizeMargin for futures
Gold (GOLD)1 kg₹45,000 - ₹55,000
Gold Mini (GOLDM)100g₹4,500 - ₹6,000
Silver (SILVER)30 kg₹45,000 - ₹60,000
Silver Mini (SILVERM)5 kg₹7,000 - ₹10,000
Crude Oil (CRUDEOILM)100 bbl₹15,000 - ₹25,000
Natural Gas1250 mmBtu₹20,000 - ₹30,000

MCX margins fluctuate based on commodity volatility. Check your broker's margin calculator before trading.

Transaction Costs Per Trade (All-In)

For a NIFTY options buy and sell (1 lot, premium ₹100):

Cost componentAmount
Brokerage (₹20 × 2)₹40
STT (0.0125% × sell side)~₹1-7
Exchange charges~₹3-5
GST on brokerage+exchange~₹8-10
SEBI charges~₹0.50
Total round-trip cost~₹52-62

On a ₹7,500 position (100 premium × 75 lots), this represents ~0.7-0.8% cost just to enter and exit. Factor this into your breakeven calculation.

Practical Capital Planning

For a trader starting with ₹50,000:

  • Max per trade (2% rule): ₹1,000
  • This means: buy options where your maximum loss is ₹1,000 per trade
  • If ATM option costs ₹100/lot = ₹7,500 per lot — this is TOO large for the account
  • Solution: Use OTM options at ₹10-15 each = ₹750-1,125 per lot exposure

For a trader starting with ₹2,00,000:

  • Max per trade (2% rule): ₹4,000
  • Can buy 1 lot ATM options (₹80-100 premium = ₹6,000-7,500) with reasonable risk
  • Enough to explore simple spreads

Practice position sizing and margin management on PaperPe before putting real money at risk. Understanding how margin works in paper trading prevents expensive real-money mistakes.

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