You can now trade in BSE Sensex and Bankex futures and options contracts on Kite.
The weekly contracts of BSE index derivative contracts expire on Friday and have 0 Exchange Transaction Charges for Futures and 0.005% (on premium) for Options.
To add these contracts to the marketwatch, you can search “SENSEX FUT” or “BANKEX FUT” for futures contracts and “SENSEX < Strike Price > CE/PE” or “BANKEX < Strike Price > CE/PE” for option contracts.
To trade in BSE derivatives, you will have to enable the BSE Futures & Options segment on Console. You can check the process for activating a segment here.
Since these contracts are new and have lower liquidity. We’ve placed the following restrictions;
- Market, SL-M, and MIS orders aren’t allowed. If you wish to, you can place a Limit order like a market order by placing a sell limit order below and a buy limit order above the CMP, which will also act as protection. More: How to use limit orders as market orders?
- Trading is allowed only in Current Week and Current Month contracts
- Regulations have a limit on client-wise OI limit of 5% of the total OI. As these contracts are new, the client-wise OI limit is set at 114 lots for Sensex and 1 lot for Bankex. This will increase further as the overall OI increases.
- Due to illiquidity, options stikes only 2% away from the spot are allowed for trading.
Sensex futures contract specifications
| Underlying | Sensex |
|---|---|
| Contract Period | 7 Serial Weekly, 3 Serial monthly |
| Lot Size | 10 |
| Trading hours | 9:15 AM to 3:30 PM |
| Expiry day | Last Friday of each month for monthly contracts (If Friday is a trading holiday the expiry will be on the prior day) For weekly contracts; Friday of each week (If Friday is a trading holiday the expiry will be on the prior day) |
| Settlement type | Cash settled. On the last trading day, the closing value of the underlying index would be the final settlement price of the expiring futures contract. |
Sensex options contract specifications
| Underlying | S&P BSE Sensex |
|---|---|
| Lot Size | 10 |
| Tick Size | Rs. 0.05 |
| Contract Period | 7 Serial Weekly, 3 monthly, 3 quarterly, and 8 Semi-annually contracts |
| Premium quotation | In Rs. per index value |
| Trading Hours | 09:15 AM to 03.30 PM |
| Exercise Type | European Style |
| Minimum number of Strikes | Shall have a minimum of 41 strikes (20 in-the-money, 1 At-the-money, 20 out-of-the-money) |
| Strike Price Intervals | 100 Index Points |
| Expiration Day | Last Friday of each month for monthly contracts (If Friday is a trading holiday the expiry will be on the prior day) For weekly contracts; Friday of each week (If Friday is a trading holiday the expiry will be on the prior day) |
| Final Settlement | Cash Settlement based on the closing price of the underlying index on the day of expiry |
About S&P BSE Sensex
The S&P BSE Sensex is India’s most tracked bellwether index. It is designed to measure the performance of the 30 largest, most liquid, and financially sound companies across key sectors of the Indian economy that are listed at BSE Ltd.
The index represents large-cap companies listed at BSE Ltd. and is calculated based on the float adjusted market-cap-weighted methodology. Widely used as a both benchmark and an investable index, the S&P BSE Sensex has a long history of more than 30 years and covers more than ~40% of the total market cap of the BSE Ltd. The index generally attempts to maintain index sector weights that are broadly in line with the overall market.
BANKEX futures contract specifications
| Underlying | BANKEX |
|---|---|
| Contract Period | 7 Serial Weekly, 3 Serial monthly |
| Lot Size | 15 |
| Trading hours | 9:15 AM to 3:30 PM |
| Expiry day | Last Friday of each month for monthly contracts (If Friday is a trading holiday the expiry will be on the prior day) For weekly contracts; Friday of each week (If Friday is a trading holiday the expiry will be on the prior day) |
| Settlement type | Cash settled. On the last trading day, the closing value of the underlying index would be the final settlement price of the expiring futures contract. |
BANKEX options contract specifications
| Underlying | S&P BSE BANKEX |
|---|---|
| Lot Size | 15 |
| Tick Size | Rs. 0.05 |
| Contract Period | 7 Serial Weekly, 3 monthly |
| Premium quotation | In Rs. per index value |
| Trading Hours | 09:15 AM to 03.30 PM |
| Exercise Type | European Style |
| Minimum number of Strikes | Shall have a minimum of 41 strikes (20 in-the-money, 1 At-the-money, 20 out-of-the-money) |
| Strike Price Intervals | 100 Index Points |
| Expiration Day | Last Friday of each month for monthly contracts (If Friday is a trading holiday the expiry will be on the prior day) For weekly contracts; Friday of each week (If Friday is a trading holiday the expiry will be on the prior day) |
| Final Settlement | Cash Settlement based on the closing price of the underlying index on the day of expiry |
About S&P BSE BANKEX
The S&P BSE Bankex index comprises constituents of the S&P BSE 500 that are classified as members of the bank sector as defined by the BSE industry classification system.
The S&P BSE Bankex index is designed to measure the performance of companies in the banking sector. Calculated using a modified market-cap-weighted methodology, the index has more than 10 years of history.
You can check more details on Sensex and Bankex here.
Note: The F&O contracts of the Sensex 50 index are currently not allowed for trading due to low liquidity. These will be available once liquidity improves.
You can check out the charges for trading in the F&O segment here:
Learn more about Futures and Options on Varsity:
