Strike price query

General
1

Hi Guys,

I have started trading in nifty and banknifty option .When i choose the strike price a bit away from current spot price (otm) many times the terminal throws the error select the near strike price.In this regard i am having the following question

(1) If my buy order was rejected due to Open Interest Restriction how trading still going on in the same strike price. I mean when i click the market data i do see sellers and bidders .How these guys are present there and how they are placing order on that day.

(2) Is Zerodha is the only broker who impose these restriction or is it common for all brokers ( Irrespective of discount and full fledged brokers like icici direct ).Is it any broker out there who let us to buy any strike price available out there.

( 3) Is this restriction get imposed only when brokers smell huge volatility or on all days.Once the restriction imposed for allowed strike price , will it remain the same for throughout the day or will it get change according to the spot price movement.

Hope you guys throw some light on the above points.

1 Like
2

This is already responded here: Where can i see the Bank Nifty Range allowed?

3

Hi Venu Madhav,

Thanks for your reply. I am also checking the strike price daily on the said link but i want to clarify my doubts over that , as i mentioned in the point. awaiting for the valuable reply.