Futures Trade

Trading lot

As in the case of contract period, trading lot is different for different products.  Trading lot is the minimum quantity specified for the trade in a particular commodity.  For example, trading lot for pepper and rubber is one tonne (1000 kg).  At the same time, trading lot for cardamom is one quintal (100 kg).  But, prices for all traded products are uniformly reckoned at quintal for comparison.  It is also required to settle the transaction on 15th day of every month.  For example, if it is agreed to buy or sell one tonne of rubber under November contract, it has to be settled on 15th November.

Last Updated : 04-01-2008