Revision in Quantity Freeze Limits for NIFTY and BANKNIFTY F&O from November 1, 2022

F&O
1

NSE has revised the quantity freeze limits for NIFTY and BANKNIFTY futures and options contracts with effect from November 1, 2022.

Here are the latest quantity freeze limits for all the index derivatives:

INDEX SYMBOL OLD QTY FREEZE LIMIT OLD FREEZE QTY IN LOTS NEW QTY FREEZE LIMIT NEW FREEZE QTY IN LOTS
BANKNIFTY 1200 48 900 36
NIFTY 2800 56 1800 36
FINNIFTY 1800 45 1800 45
MIDCPNIFTY 5500 73 5500 73

You can check the announcement from the exchange here.

4 Likes
2

Why is this being done in the first place ? 36 lots in one go is a very meagre number. If someone is trading even 100 lots, one has to add multiples of 36 in basket orders. More slippages, more costs.

1 Like
3

900 is too low!

Benefits of Quantity Freeze:

  • Smooth order flow.
  • Better liquidity (Large orders will have to be sent in smaller quantities).
  • Better execution
  • Limits accidents (Fat finger trades)
  • Discourages the formation of dark pools (As institutions don’t have the incentive to hide large HFT to some extent).

This has been a growth engine for brokers!

4

Nifty likely to stay below 17500 on Friday. So finally freeze quantity will increase to 2800 in nifty from April. Saves brokerage and GST by 40 percent. :metal:t2::metal:t2:

1 Like
5

17250 hai na cutoff?

1 Like
6

My vague memory says it’s 17500. Let me check.

7

Sorry. It’s 17250. I could have first checked and then replied. :wink:

8

Jason Confusionino :grin:

1 Like
9

:man_facepalming::man_facepalming::man_facepalming:

10

I celebrated little too early I guess. :cry::cry:
And even now I am crying too early.
I could wait for 3.30. :grimacing::grimacing:

11

Can one trade above-freeze quantities using Iceberg orders?
What would happen if I punch a single order above the freeze quantity?

12

You just have to place it as an iceberg order.
But then you need to learn multiples of freeze limit. Hahahaha.
In zerodha we have to select the number of legs.
I now know the multiples of 1800. :grimacing: