DogsAndMe:
Hello Sir.
In simpler terms, If I develop a software (order slicing tool) that can execute 1.8 lakh Qtys in Bank Nifty in 1 click rather than creating & executing 10 Baskets so is it possible through 1 Zerodha Account ?
Thanks.
How much quantity you will be able to trade depends on the Open Interest in the market. There is a client-wise open interest limit of 5% of the total number of all derivative contracts for the same underlying. You can learn more here .
Please check out this thread:
The limit is applicable on overall OI of all derivative contracts of that underlying, this will include Calls, Puts as well as Futures.
For example: if Call option XYZ has an OI of 100,000, the Put option has OI of 50,000, and the Futures contract has OI of 200,000. The the total OI is 350,000, the 5% client-wise OI limit is applicable on this.
The client-level OI limit is calculated at the PAN level by Clearing Corporation. If the 5% OI limit is breached, the Clearing Corporation will notif…