The National Stock Exchange (NSE) is set to implement significant adjustments to its ticket sizes for scrips, indices, and futures and options (F&O) contracts starting April 15. This change, which will reflect stock prices as of March 28, aims to enhance trading efficiency and market dynamics.

New Ticket Size Guidelines

Beginning next month, the NSE will modify the ticket size based on the price of the security. Here’s how these adjustments will look:

• For securities priced between ₹1,000 and ₹5,000, the ticket size will increase from ₹0.05 to ₹0.10.
• If the stock is priced below ₹1,000, the ticket size will remain at ₹0.05, meaning no changes for those stocks.

For instance, a stock that previously had a lot size priced at ₹100.05 will now be adjusted to ₹100.10, allowing for incremental movements like ₹100.20 and ₹100.30.

Index Ticket Sizes Adjusted

Changes will also impact index ticket sizes. Here’s what traders need to know:

• Indices between 15,000 and 30,000 will see their ticket size grow from ₹0.05 to ₹0.10.
• For indices exceeding 30,000, the ticket size will change from ₹0.05 to ₹0.20.
• However, if the index level is below 15,000, the ticket size will stay at ₹0.05.

Understanding Tick Size

A tick size is defined as the smallest allowable price movement for a trading instrument, crucial for market operations. For example, a ₹0.05 tick size means that a stock can fluctuate from ₹100.00 to ₹100.05, but it cannot change to a price like ₹100.02.

Summary of Changes

Stocks:

• Price Range: Below ₹2,500

  • Current Tick Size: ₹0.01
  • Proposed Tick Size: ₹0.01 (Unchanged)

• Price Range: ₹1,000 to ₹5,000

  • Current Tick Size: ₹0.05
  • Proposed Tick Size: ₹0.10

• Price Range: ₹5,000 to ₹10,000

  • Current Tick Size: ₹0.05
  • Proposed Tick Size: ₹0.50
• Price Range: Above ₹10,000
  • Current Tick Size: ₹0.05
  • Proposed Tick Size: ₹10

Indices:

• Index Level: Below 15,000

  • Current Tick Size: ₹0.05
  • Revised Tick Size: ₹0.05 (Unchanged)

• Index Level: 15,000 to 30,000

  • Current Tick Size: ₹0.05
  • Revised Tick Size: ₹0.10
• Index Level: Above 30,000
  • Current Tick Size: ₹0.05
  • Revised Tick Size: ₹0.20

These adjustments, effective April 15, aim to streamline trading processes and adapt to market conditions. Traders should prepare for these changes to optimize their trading strategies. For more insights on stock market trends, consider exploring resources like Investopedia.