There are many benefits of trading in stock futures and options. However, these derivatives are not available for all securities. You can get them only on those securities that are on the F&O stock list.
There are 175 securities on the F&O stock list stipulated by the Securities & Exchange Board of India (SEBI). The eligibility criteria for being on this list have been specified by the regulatory body.
Eligibility for selection of securities & indices for F&O trading
Here are some of the requirements to be on the F&O stock list.
- The stock shall be chosen from amongst the top 500 stocks in terms of average daily market capitalisation and average daily traded value in the previous six months on a rolling basis.
- The stock’s median quarter-sigma order size over the last six months shall be not less than Rs 25 lakh.
- The market wide position limit in the stock should not be less than Rs 500 crore.
- The average daily delivery value in cash market shall not be less than Rs 10 crore in the previous six months on a rolling basis.
Latest F&O stock list with lot size
Now that you have the latest F&O stock list with lot size, you can go ahead and trade in futures and options on the stock exchange.
Frequently Asked Question
How many stocks are in F&O?
As per the latest updated report, the F&O stock list contains 175 stocks stipulated by the Securities and Exchange Board of India. The shares in the F&O list are selected from the top 500 stocks, based on their average daily market capitalisation value and daily traded value calculated on the 15th of every month.
Which stocks are in F&O?
Only stocks that meet the criteria in terms of volume and liquidity are only available in the F&O segment. There are 135 individual securities stipulated by SEBI for the F&O stock list.
Check out the latest F&O stock list with lot size here [url: https://www.angelone.in/knowledge-center/futures-and-options/f-and-o-stock-list]
How do you trade in F&O?
F&O trading is different than trading in stocks. It is important to note that only a handful of stocks are available for F&O trading.
A futures contract on stocks or indices allows traders to buy or sell the underlier at a preset price on a future date, irrespective of market trend. Similarly, a call option gives rights to the owner to purchase stocks on a future date at a strike price mentioned in the contract.
Trading in F&O involves three stages.
1 – Buying Equity Futures
2 – Holding Futures
3 – Selling Equity Futures
However, since not all stocks are available for trading in F&O, you would need to keep an updated F&O stock list with prices handy.
What is the F&O expiry?
The typical life of an equity futures contract is three months – the near month (month one), the next month (month 2), and the far month (month 3). A futures contract expires on the last Thursday of the expiry month. If the last Thursday is a trading holiday, the contract will expire the day before. Traders, therefore, need to be careful about the expiry date. After the expiry date, the contract becomes valueless. Tracking equity futures on NSE F&O live price list will help you stay updated on the expiry dates of different futures.
What is reverse trade in F&O?
Reverse trading in F&O happens when a trader chooses to close his position regarding a futures contract by changing the trade. Say, for instance, you are long on a futures contract, but at some point, you think that the underlier price will go down, so you reverse your position by selling the existing futures contract. The other term used for reverse trade is Stop and Reverse order or SAR.
How many lots can we buy in Nifty?
In 2018, SEBI changed lot size from 40 to 20. The maximum size per order or order freeze quantity remains unchanged, which is 2500 or 125 lots. Check the updated F&O stock list with lot size on the Angel One website before bidding.
How do I buy F&O shares?
To trade in F&O, you need to open a trading account with a stockbroker in India involved in F&O trading. For buying, you can visit NSE or BSE websites to see a list of future contracts available on securities and indices. The process of buying a futures contract is the same as buying securities for delivery. Once you find the option you will be interested in, click on buy.