Order Rejected RMS Rule

I am getting a notification of order rejection
RMS:Rule: Option Strike price based on Ltp percentage for entity account-xx1234 across exchange across segment across product

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There is a restriction on Banknifty options strikes range due to a violation of broker level open interest of 15%.
The range for today, Wednesday, 2 Aug 2017 is 2%.

Banknifty currently is at 25160. You can trade option strikes plus or minus 2% from this ltp, which is +/- 500 points.

Refer to this NSE link for more explanation on open interest violations.

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

I have the same RMS rejected, but the reason mentioned above does not satisfy.

  • The Option strike price is well with in the limit as mentioned.
  • The Circuit of the Options was well within.
  • The order was a Limit Order for Just 1 lot of BankNifty Weekly Options, the same got executed in other broking terminals for the same price and time.

Faced issue in buying a PUT in Zerodha kite.

Any help would be appreciated.

The position limit of a Trading Member in equity index option contracts is higher of Rs.500 crores or 15% of the total Open Interest(OI) in the market in Banknifty option contracts. NSE link declaring the same.

Since Zerodha as a Trading Member is breaching the 15% limit of total OI in Banknifty option contracts, we dynamically limit the strikes in which positions can be taken based on the LTP of Banknifty spot.

Today’s dynamic percentage was 1.3% from the spot. So if Banknifty was at 24,400 at a given point, then you could trade strikes +/- 1.3% from this spot price, that is any strike between 24,700 and 24,100 at that given point.

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Hi, Why are you penalizing retail traders because of some big players who is creating more than 500 crores or more than 15% of the otal OI?
Today, I placed order 24500 CE (17th Aug contract) at Rs.2 and by close it went to 60+. Missed great opportunity! The rejection reason should tell to try more “in the money strikes” and not just stating this strange rule.
Daily where can i find your “dynamic limit”?
Will you please change this rule for retailers or should I think of switching broker? I can’t offer to loose such opportunities every week.

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@vijayraghavs

We’ve already sent a request to the exchange to have this rejection reason re-worded to a more understandable form. If our request is accepted, then the rejection message will be changed.

W.r.t Banknifty option strikes allowed, the % range from LTP is 9% for Fri, Mon, Tue; between 2.5% to 3.5% on Wed and between 1.5% to 2% on Thur based on the quantity of orders coming in.

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today when bank nifty at 27350 move both side so i take call option of 27700 at 35 premium which is executed and for safty put of 26200 at premium 5 but not ececuted and in rejection this message show" rms:rule: option strike price based on ltp percentage for entity account-zu5671 across exchange across segment across product" pl. explain it it detail why 26200 put option not executed.

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@BharatW - Any update on this? This problem occurred today as well. Bank Nifty was trading at 27340 and option strikes of 28500, 28400, 28300 for the contracts expiring on February 1, 2018 were blocked.

The error message was: "RMS:Rule: Option Strike price based on Ltp percentage for entity account-YF3333 across exchange across segment across product "

I was trying to sell call options of 28500, 28400, 28300 and all the orders were rejected by your RMS. I was finally able to execute 28200 strike orders.

@nithin - The problem with what you are doing is that with the budget on Feb 1, 2018 and the Volatility Index at ~18, if Zerodha forces users to select strikes that are closer to the market price, these strikes can be breached leading to losses to users.

Who is going to pay for the losses? Obviously the users since Zerodha is not going to.

If you are hitting the exchange limits then block large users who are trading hundreds of lots and not small traders who are looking to trade small numbers of lots

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Why this eorro is coming while placing ordeeScreenshot_20180206-123428

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