BUSINESS ADMINISTRATION
OFFICE MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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lot
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price fraction
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unit
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unit of participation
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Detailed explanation-1: -A board lot is a standardized number of shares defined by a stock exchange as a trading unit. In most cases, this means 100 shares.
Detailed explanation-2: -Description: In the stock market, lot size refers to the number of shares you buy in one transaction. In options trading, lot size represents the total number of contracts contained in one derivative security. The theory of lot size allows financial markets to regulate price quotes.
Detailed explanation-3: -trading. noun. the activity of buying and selling shares in companies.
Detailed explanation-4: -Understanding a Standard Lot A standard lot represents 100, 000 units of any currency, whereas a mini-lot represents 10, 000 and a micro-lot represents 1, 000 units of any currency.
Detailed explanation-5: -The value of the options contract in the product of the number of units and price of each. So, if NYFTY50 options’ price is 7000 and one buys a lot size of 100. The total value of the contract is Rs7000*100 or Rs 7, 000, 00. SEBI has defined lot size for every stock and index available for derivative trading.