The quantity freeze limits for Index Futures and Options contracts will be revised and come into effect from 2nd August 2021. You can check the announcement from the exchange here.
Below are the old and new quantity freeze limits:
Sr. No
Index Symbol
Old Limits in Quantity
Old Limits in Lots
New Limits in Quantity
New Limits in Lots
1
BANKNIFTY
2500
100
1200
48
2
NIFTY
5000
100
2800
56
3
FINNIFTY
2800
70
1800
45
Update: The quantity freeze limit for FINNIFTY was revised from 2800 to 1800. You can check this circular for more information.
by above format i understand is we can place maximum 1200 quantity in one order…
earlier it was 2500 for bank nifty…
what is the maximum number of lots we can trade in a day…
plz elaborate on the same…
Don’t get this. The margin per lot has decreased, so they should have increased the quantity, not the other way around. If one deals with large quantities, this would lead to more losses as you would not be able to exit quickly in case of sharp move (though I’m sure exchanges, brokerages etc. will as usual say it’s for the “benefit of retailers”).
Here is the deal, with basket order people can place as much quantity as they want, but they will have to place as separate orders. . more than double brokerage
Is there anyone who actually represents the traders/investors’ side in these things? Even Wisdom & other brokerages who had appealed against the reduced leverage thing did so not to help the retailers, but because it hurt their business model, which is to provide 40-50x times leverage. They know they can’t compete with the likes of Zerodha in things like UI, etc.
And obviously, no broker is going to protest against this reduced freeze limit. @nithin, it is due to things like these why there’s a general mistrust wrt SEBI, brokerages etc among the retail traders, and doesn’t look like it’s going anywhere soon.
Can check here, full circular. Guess this has to do with recently nifty fut trading at far away prices at open as many are placing market orders at open so they want to control that way, I think.
Increased Margin in Naked Straddles or Naked Option selling. Forcing the Traders to take unnecessary intraday HEDGE. Thus Broker gets twice the brokerage.
By decreasing the freeze limit by almost half, The brokerage now would be twice as before for executing a 4900 qty order. Thus Broker gets twice the brokerage again
To summarise, the innocent traders are paying upto 4x More brokerage due to the recent SEBI rules. Which makes me doubt the personal benefit of the SEBI board.
This is really bad for traders as SEBI is imposing all anti-trader policies. @nithin@siva i know this is not your headache but having done so much over the years for traders it would be great if you can represent this case & ask them to revert back on margin & this quantity freeze limits. Thanks.
I believe we have to let it go on margins, can’t be redone. This freeze limits are from NSE. Both these are out of broker control but for margins even Nithin mentioned many times that intra risks are much lower compared to overnight so we can have some leverage for it.
Contrary to other people I think it may be a good thing. We had seen ‘price is out of current execution range ‘ many a times in option due to sudden orders piling up and causing circuit limits in option strikes. Do you think it may curb somehow and also help a bit in controlling excess volatilities caused in shorter time frames due to larger orders including freak trades ?
