Disallow trade in illiquid options

F&O
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@nithin Had read your tweet where in you had stated zerodha will comeout with a kill switch and feature which will disable trading in illiquid options. Is the option to stop trading in illiquid options likely to come soon.

With so many fno stocks it would be better if user can just set the symbols and the current weekly/current monthly options which the user wishes to trade.

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Trading is blocked for illiquid options contracts based on these criteria -

  • For stock option contracts, trading is completely blocked for the near-month and the far-month contract if the LTP and the open interest are zero.
  • For index option contracts, trading is completely blocked for the far-month contracts and long-dated contracts if the LTP and the open interest are zero.

The Kill Switch option for this is still in the works

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Simple workaround if someone wanted to move money off a compromised account could perhaps be to do a dummy trade in an illiquid option using another broker’s account. Then you have ltp.

It would be nice if you could give an option for much stricter rules. We have a lot of execution providers coming up now. In the long run, being able to restrict them on what they can do would make it safer for those who use their services ( vs advice of not sharing account which people wont follow )

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I’m unable to place a sell order for Nifty 20K 2028 PE.

Reason : At Zerodha, trading is restricted for near-month and far-month stock option contracts when both the last traded price (LTP) and open interest are zero.

My query: So which broker is allowing to place orders in 2028. There are already many open orders in 2028 strikes.