I am just curious that, how big I can go if I have found a conservative strategy with eliminated/diminished risk? How big I can go before meeting a situation where I could not find a buyer/seller and liquidity that leads to loss?
For example, I found that the margin required to have Options Credit Spread in Nifty per lot is around Rs.40,000. If I raise a spread order for 200 or 300 lots what will be the consequences.
Thank you.
200 or 300 lots of nifty is inconsequential quantity for nifty contracts to have some impact on either liquidity or on market price unless they are deep out of the money.
For few other contracts that quantity size might have some impact on liquidity or on market price or on both. It is totally unique to individual contract. Study average daily volumes for last couple of years and about impact costs on particular contracts to get a better picture about them.
about liquidity of market, i just want to say that daily 30 to 40 billion dollar money is betted in futures and options, now ur 200 to 300 lot order is worth only mere just 1 crore or 1.5 lakh dollar