FINNIFTY liquidity increase

FINNIFTY liquidity has increased in recent times on expiry days at least. I as a trader firmly believe that liquidity will further increase if 50 strikes are introduced. Currently there is a large skey in premium as 100 pts distance is too much for adjustments. Imagine having 225 pt distance between 2 strikes in Bank nifty.

What is the way that this gap is brought to notice to NSE and a case can be made. @nithin any view on this.

We will let the NSE team know about this.

@MohammedFaisal + +


Thanks a ton for such a quick response.

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NSE issued circular adding 50 strikes in finnifty. That was fast. Thanks @nithin


@Sensibull , please add Finnifty in sensibul. Its volume has increased considerably, now i you need to think tlof adding it.

Also, please add iceberg order feature , atleast for market orders.

hi what is better Finnifty or Banknifty for intraday ??

On the similar grounds, Can NIFTY expiry be pushed to Wednesday instead of Thursday?

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That would be awesome.

What is the benefit of Wednesday expiry ?

More expiry days. Liquidity will increase.

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  1. Lot of volumes happens on options expiry , if we have more exipry days ,volatility will decrease as it will distributed equally on other indexs
  2. More, liquidity in other indexes and less options spikes on expiry
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Are you saying Nifty Expiry on Wednesday and Finnifty expiry on Thursday ? I don’t think that will be a good idea. Almost all stocks of Finnifty are already included in Nifty. It will just get volatile if we have back to back expiries on different days.
Infact Exchanges/Govt. should reduce lot sizes and transaction charges/STT to increase liquidity or much less margin requirements for Indices.

No , Finifty on tuesday , Nifty on wed , Banknifty on thursday( no overlap of expiry) If you see , any expiry its mostly sideways in range( as lot of straddles and strangles are created to eat premiums) or trending in one direction. so Volatility ( big swings ) decreases on an expiry.

Yes, lot size may not impact much but yeah reduced charges will definitely help. But , i don’t think anyone gonna reduce charges ( no one gonna reduce there income )

I strongly feel lot sizes for stocks should be reduced to 2lakh to 3 lakh contract value. I know earlier it was around this value and later increased to 5 to 10 Lakhs.
Hedging becomes easier with smaller lot size. Definitely liquidity will increase.
But I guess this is a SEBI rule and EXCHANGES can’t do anything.

Ah, we just got to be careful with making any further moves, it’s quite risky considering the new changes. The liquidity is bound to increase so we just have to wait and watch.