Derivatives
Lot size
Lot size is the fixed number of units in one derivatives contract; futures and options can be traded only in whole multiples of it.
In the cash market you can buy one share. In futures and options you cannot. The exchange fixes a lot size for each contract, and every order is for one lot or a whole multiple of it. The lot size is the number of units one contract covers: shares for a stock, index units for Nifty or Bank Nifty, barrels, grams or kilograms for MCX commodities.
Lot size turns points into rupees. Profit or loss per lot equals points moved times lot size. The same multiplication gives contract value: price times lot size. This is why a 10-point move means very different money in different contracts, and why MCX lists mini and smaller variants of some commodities for smaller accounts.
Exchanges revise lot sizes. NSE reviews them periodically to keep contract values within a band, and MCX changes contract specifications from time to time. A number you read in a blog or an old video may be out of date. We do not state current lot sizes on this site. Check the current NSE or MCX circular, or the contract details in your broker's order window.
The common mistake is sizing in lots before working out rupees. A trader says one lot is small, without multiplying the stop-loss distance by the lot size. If that number is more than you planned to lose on one trade, the position is too big even at one lot. The right action is to pick a smaller contract or skip the trade.
Worked example
Points to rupees with a hypothetical lot
Illustrative numbers, and the lot is made up. Suppose an index future has a hypothetical lot of 40 units. A signal gives entry 25,000 and stop-loss 24,940, a risk of 60 points, or 60 x 40 = ₹2,400 per lot. With a ₹5,000 limit you can take 2 lots, risking ₹4,800; 3 lots would risk ₹7,200. Contract value per lot is 25,000 x 40 = ₹10,00,000. Use the figure from the current NSE circular.
In WizeBuySell
WizeBuySell signals are given in price: entry, T1, T2, T3 and the stop-loss are levels on the chart. The software does not know the lot size, your capital or how many lots you trade, and it does not place orders. Converting the stop-loss distance into rupees per lot, and deciding the number of lots, is your job. Take the lot size from the exchange circular or your broker's terminal.