Comment on Lot sizes reduced for various NSE F&O Contracts

Sukesh commented on 28 Nov 2014, 10:54 AM

Hi Nithin,

I see that the markets are volatile during derivative expiry. Lot of markets movements are dependent on derivatives open interest etc.

This is confusing to me as derivatives is a completely different ball game when compared to the stock/share/cash market. Derivatives only ‘derives’ the value from the underlying.
How can derivative trades actually effect the broader market? I feel derivatives should be dependent on cash market but how can derivative market influence cash market/Index/underlying?

Thanks
Sukesh

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