I'm trying to palce an order in Bank Nifty but my order is getting rejected. I'm getting the error"RMS:Rule: Option Strike price based on Ltp percentage for entity account-ID across exchange across segment across product". Why is this?

#1

RMS:Rule: Option Strike price based on Ltp percentage for entity account-ID across exchange across segment across product

If orders to open new positions in BankNifty options are placed outside the range allowed by the mandated Open Interest restriction (i.e OTM & deep OTM strikes), the order is rejected & the above error is displayed.

Please refer this post for more information.

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Orders Rejected
Order rejection rms rule
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Option order rejected
Bank Nifty contracts allowed for trading
#2

Earlier we at Zerodha used to restrict trading in Bank Nifty within a certain range updated here. This was due to exchange OI restriction on brokers.

However, going forward from now, we will remove this range restriction for option shorting (the way member level OI utilization is calculated by NSE, shorting will not increase member level OI utilization)

Click here for more information.

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#3

This really hurts for a options buyer like me. Come Wednesday second half and Thursday…most of the ITM options are already blocked by RMS. I have already switched to other broker if I have to take any position on Wednesday second half or Thursday.

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#4

Is the other broker having no restrictions or minimum restrictions?

I mean is there much more strikes you can buy there?

#5

This is a broker specific issue. The other broker in my case doesn’t have these restrictions as may be they haven’t breached their % market wide position yet. It is a matter of time when they too may start blocking it.

You can buy options with the strike price of your choice.

#6

Buying is enabled, but not selling. How funny…

#7

Motilal Oswal

#8

No, I am not able to buy 26300 PE at 80 cents. BankNifty currently trading at 26724. I don’t understand why I cannot buy far OTM options. Maybe I should stick to Nifty trades.

#9

Change your broker, its simple

#10

Do these limits apply only for BN Weekly Options because I am able to place orders on BN Monthly options without issues.

Despite this range restriction from zerodha website "Bank Nifty contracts allowed for trading: 27300 TO 27400 CE AND PE " I just bought 27500 ce Monthly option,

Sorry if this is a dumb question.

#11

Yes its for weekly (current) i think

Even next week it should allow

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#12

@Kshiteesh_Saralaya, @siva
Last Bank nifty expiry, I had shorted 27600 CE, then towards afternoon Banknifty moved down and 27600 was out of range. I tried to squareoff, it said LTP restriction. I was not buying fresh, I was trying to squareoff my existing position(by buying back which I had sold earlier), but I was Not allowed to do. So I had to let my short option expire with my money. what if I had shorted on MIS large qty and system had blocked me from squareoff. How you would have handled this?. This is a Systematic risk.
If someone shorts large quantity using MIS, then RMS blocks them from squareoff due to out of range restriction. It will be a very difficult situation.
Atleast you should allow traders to squareoff their existing short options.

#13

There is no restriction on squaring off, may be you are trying in different product type or already counter order might be pending.

#14

Why am I getting this order rejection error?Screenshot_2019-01-04-10-22-53-632

What does the error "RMS:Blocked for BANKNIFTY OPTIDX nse_fo BO Remarks: BO are blocked for Banknifty Options block type: ALL" mean?
#15

Currently Bank Nifty is at 27000 .

We cant buy 27500 call or 26500 put in monthly bank nifty options ( though i can sell ).
Other strikes are not liquid ( 27100 to 27400 call and 26900 to 26600 put ).

@siva can you guys do something like allow buying atleast two round figure strikes in monthly bank nifty options like 27500 CE and 26500 PE … or can you guys allow it just for intraday ?

#16

Can check above thread, we are trying hard to find a solution for this, currently we can’t do anything about this as this is the restriction imposed on brokers limit.

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#17

if selling is allowed , then you guys can use the same reason to convince buying in monthly …
i understand why these restrictions are there and i dont have issues in having restrictions on weekly BN options ( most trade happens here ) , but would be happy if buying is allowed on monthly BN options …

in monthly BN options only two or three round strikes are active in calls and puts and rest of the in between trikes are illiquid … this restrictions prevent us doing positional calendar trades

#18

Selling won’t add much to OI but buying does.

Not possible to do this way for now.