Why bracket and cover orders are not enabled for banknifty
The position limit of a Trading Member(Zerodha in this case) in equity index option contracts(Banknifty option contracts in this case) is higher of Rs.500 crores or 15% of the total Open Interest(OI) in the market in Banknifty option contracts.
Since Zerodha as a Trading Member is breaching the 15% limit of total OI in Banknifty option contracts, we are blocking Banknifty option trading in Cover Order(CO) and Bracket Order(BO) effective 21st April, 2017 to curb any further increase to the OI through Zerodha as BO/CO are highly leveraged products.
You can resume taking intraday Banknifty option trades using the product type MIS.
Here is the NSE link declaring the same rule on position limits of Trading Members under Index Options.
Thanks @BharatW for the clarification.
can I get same leverage (1.4 times) in MIS order also ?
Thanks for the clarification. Otherwise till end of life I would be wondering why BO/CO are blocked for Banknifty? Good ! But do we understand that this BO/CO wont be enabled for BNF again?
Then why cant zerodha provide us BO/CO in index options writing until 15% total open interest limit breaches out.
Yes, unless the open interest remains below 15% of total market limit then whats the problem?
You should provide high leverage on options writing & this feature should be provided as first come first serve basis every month & week for monthly & weekly contracts respectively.
Once the 15% limit is breached, you can withdraw the leverage temporarily until the next contract cycle begins.
@Spaceship, why would you post the same reply on 2 different threads?
So that means to trade banknifty i need to open a separate account with different broker whose total client turnover is less than 15% of OI . zerodha please provide a solution for this, we want Bracket and cover order in Banknifty.
Yesterday when banknifty was trading at 25460/-
i am trying to entered in bank nifty 25000 PUT option at rs.4.75/-
BUT Zerodha rejected my order
resone given my zerodha i.e. there is limit etc etc
Upstox was allowing me to trade
So withdaw all amount from zerodha and deposited in to upstox
please inform me when zerodha allowing dep option trading
I am not able to trade in Weekly BANKNIFTY options due to zerodha hitting the broker limit I guess !!!
rms:rule: option strike price based on ltp percentage for entity account-xxxx across exchange across segment across product
I know i need to change my strike price for the solution.I changed 2-3 100 strikes but still the same message. I dont want to go far away from strike since it makes no sense due to low premiums !!
Does this mean end of BANKNIFTY weekly options in Zerodha as the broker limits are getting hit in 1st Day itself !!
Why other brokers are not facing this issue ?
@Nithin, pls do address this serious issue. We cannot take banknifty OTM positions on week days & expiry.
This is extremely serious issue. I am not able to trade weekly bank nifty at all due to this !! Sometimes we will form a complex leg positions and 50% of the positions will have this problem.
True. This is becoming problematic now! BankNifty weekly options are the only weekly options that are available in India, and if we are unable to trade OTM strikes as per our risk appetite then we have a problematic issue at hand. Hopefully some solution will evolve in the near future as no one likes to see good opportunities evaporating away repeatedly.
Any updates on this ? Anyone from Zerodha is in touch with SEBI/NSE regarding this ?? Its very negligent from Zerodha that they are silent on this major issue. People will move out from Zerodha if they cant trade on Weekly Banknifty options !
I am not able to add scripts for banknifty weekly options in my market watch list. Pl help.
Pls type the strike price first, then you shall find it
Since Bracket Orders are not enabled for Banknifty options, is there any way to put a trailing stop loss on banknifty options?
Only way is to place order and change it manually each time.
I tried to use BO and CO orders, it rejected saying the order type is not available for banknifty options.
Please let me know if it is available or not
Not available for banknifty options.