Quantity Freeze - purpose and logic

#1

a basic question:

the quantity freeze is 10,000 in Nifty.

and if i wish to take position for 50,000, can i place 5 orders of 10,000 each?

Is this possible or if the quantity freeze is blanket freeze that any one retail trader can possibly place throughout the day?

kindly help.

thanks.

#2

Yes you can place 5 orders of 10,000 each. 

Client level position limit set by the exchange is 5% of total open interest in that contract. So you can place as many orders as possible but can't exceed 5% of the OI. 

Check this NSE link on position limits

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#3

yes you can place 50k as 5 x 10ks each.

5% of OI is in fact very huge for a retailer, so you need not worry about limits.

The logic behind quantity freeze is to avoid any erroneous entry while placing the order and not for setting any limitation to the trader.

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#4

thanks. is this client level limit applied on intra-day trading as well? for someone who does not intend to carry the position overnight.

#5

Yep, even intraday trades contribute to OI.

#6

This stands for institutional traders also?

#7

Yes.