Either nifty of bank nifty …we see immediate change in premium as and when the underlying changes its price.
So are there hundreds of traders -trading every second which is why premium is increased or decreased or algo (computers) are doing this ? @ksksat @maddy_Des @ShubhS9 @siva @Sensibull
Algos can do based on the inputs given to it or even by humans, there are lakhs of traders and not hundreds.
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I think in my observation algos of big institutions and also algos of ppl sitting inside exchnages having direct connectivity to feeds, are the main guys who maintains the premiums of options.
They have sophisticated systems with high connectivity so that their orders are placed well before the retailers.
Yep that is what I thought …humanly its not possible for such fast speed.