If I am holding futures contract of a script and it enters into FnO ban, how difficult is it to square off?
From your experience, are there sufficient buyer/seller to square off existing position? Will setting a market order during this time cause huge slippage?
Anyone from Zerodha who has had experience in this please help.
When the stock F&O contracts are in the ban period, no fresh positions are allowed for any of the futures and options contracts in that stock. You will only be allowed to exit the existing positions during this period
This should help
I know that. I didn’t ask that.
What I am asking is when such a situation occurs how easy is it to square off? Do sufficient buyer or sellers remain? If you have experienced such a scenario did you find sufficient liquidity to exit your open position without much slippage?
liquidity will be low as new positions aren’t allowed… check market depth for SunTV futures which is in ban period… there is quite a gap between bid and ask prices so best to place limit orders…