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.
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.
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.
thanks. is this client level limit applied on intra-day trading as well? for someone who does not intend to carry the position overnight.
Yep, even intraday trades contribute to OI.
This stands for institutional traders also?
Yes.
There is 5 % of OI limit on FNO.
if nifty has 1 lakh OI I can buy 5000 future contracts or options.
If I square off this position can I buy 5000 Contracts or options again?
You can.