From above link this is a real limitation in trading via Orbis, when buying OTM is part of a spread.
"Although you will still be able to use Kite, there are some restrictions:
You will only be able to trade in F&O. The equity segment will be blocked for you.
You will not be able to pledge holdings as collateral while trading."
This is a big limitation and restriction on Zerodha.
Daily volatility on NIFTY is 1.9% and BANKNIFTY is 2.5%. Implied Vols for BANKNIFTY is greater than 30%. And I can not buy BANKNIFTY call of even 6% OTM strike most of the time.
@nithin, @siva-reddy : Maybe Zerodha can start ârationingâ far OTM strikes. Each trader can buy a limited quantity of far OTM strikes every week !!!
This may not be practical but we started moving clients to orbis, we notice a pick up, hoping in next few weeks we can able to add more to orbis thus helping our OI limits.
While filling up Orbis Form they ask for net worth to be more than 1cr which is not in many cases how to go ahead with this ?
Since all strikes are allowed in Orbis , buy far otm strikes and selling otm strikes will there be margin reduction ? Later it should not be the case where we are allowed to buy far otm strikes but margin reduction did not happen
Please clarify
@nithin@siva-reddy atleast allow Buying in round figure strikes like 8500, 9000, 9500, 11500, 12000 strikes in Nifty and BN for margin benifit. This OI limit is a big headache for us. Earlier restrictions were there only for current week strikes. Now next week strikes are also banned and weeks after that donât have liquidity. It is becoming increasingly difficult to trade in options with Zerodha. Maybe you should put restrictions on F&O in small accounts. You shouldnât allow F&O for accounts with cash upto 1 lacs or 50k. You will have to come up with some other restrictions to resolve this issue otherwise big accounts will start looking for exit.
We started moving clients to use orbis route, hoping that will increase our limit, if you donât want any restriction maybe you can look at this route for now.
We know Zerodha and we trust it since it has been able to capture the market and ppl are happy with its performance. When it comes to Orbis Financial I have doubts regarding the form where it asks for net worth! And how many Zerodha traders have actually migrated their and happy with orbis. Since itâs going to be a new experience I am a bit spektic regarding genuinity and safety of our funds
As there are no reviews about Orbis yet anywhere the decision to migrate become tough
Can you clarify itâs safe !
Hi @Dushyant_Shrimankar ,
The Front End Experience is the same as before , as you trade from Kite itself .
Yes you can trade all of the strikes and only in FNO , the EQ Seqment will be blocked .
Margin Benefit is also given . Your Ledger will be maintained by Orbis .