You might be confused with the terms CE and PE. These terms are used in option contracts.
An option gives a person the right but not the obligation to buy or sell something.
An option is a contract between two parties wherein the buyer receives a privilege for which he pays a fee (premium) and the seller accepts an obligation for which he receives a fee.
The premium is the price negotiated and set when the option is bought or sold.
A person who buys an option is said to be long in the option. A person who sells (or writes) an option is said to be short in the option.
In India, the option contracts are European style. All option contracts based on NIFTY and Bank NIFTY are cash settled.
CE means Call European and PE means Put European.
In european style, an option contract limits execution to its expiry date. This means, the option contract can not be exercised before the expiry date. A trader can only choose to exercise (or not) his option on the date of expiration. In other words, investors would not be able to exercise the option early, they have to wait for the expiry date.
On the other hand, American options allow traders to exercise their buy or sell an option at any time before the option’s expiration date.
What is lot size to trade in Nifty and Bank Nifty
In pursuance of SEBI guidelines for periodic revision of lot sizes for derivatives contracts specified in the SEBI circular CIR/MRD/DP/14/2015 dated July 13, 2015, the market lots of derivatives contracts on Indices are revised as follows:
| Underlying Index | Market Lot size |
| NIFTY 50 | 50 |
| NIFTY Bank | 15 |
| NIFTY FINANCIAL SERVICES | 40 |
Earlier lot size for NIFTY, Bank Nifty and Nifty Financial services was 75, 25 and 40 respectively. This means only the lot size of Nifty has been changed.
Link to get details
