Trading in MIDCAPNIFTY

When can I expect to start trading in Midcapnifty. Currently orders couldnt be placed because of reason showing lack of liquidity in Midcapnifty

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I believe @nithin should at least permit liquidity to increase in other instruments, especially BSE related contracts, because there is so much OI load from Zerodha clients in Nifty, Bank Nifty, and FinNifty that we are unable to even choose strikes for NRML.

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@nithin @ShubhS9

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We have month end as a target to launch FO scrips on BSE.

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Please also update on when can we trade in MIDCPNIFTY options specifically on expiry days at least. I am sure if brokers start allowing trade on that, liquidity will pickup. FINNIFTY is a case study for that. Liquidity in itself cannot rise unless ppl are allowed to trade.

Yes
@ShubhS9 @nithin

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There are two issues with allowing Midcap Nifty F&O contracts right now.

  1. Low client-wise OI limits- Clientwise OI limit for an F&O contract is 5% of the total open interest. Since the total OI is low, the limit is set is less than 1 lot. We are working with the exchange to have this limit exempted temporarily to allow trading.

The other reason is very low liquidity which @Meher_Smaran has explained in this post.

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Yesterday 7500 CE. ended n 4x.
Was trading at 7rs at 1pm. . Closed around 30.

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How is the overall liquidity? Has it improved ?

Also bse contracts have their first expiry tomorrow. Any idea on the liquidity here ?

Till 1 pm there was huge price gap between buyer and seller price. Suddenly after 1.30 ITM option picked up momentum and had good liquidity.
No idea about bse contracts

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@RudreshKunde on Twitter

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Similar trend has been observed for FINNIFTY on expiry during its initial days before picking up liquidity

Hope the same happens for MIDCPNIFTY

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it took 2 years though

Good things take time :slightly_smiling_face:

After they moved it to Tuesday I do not think it took 2 years.

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Now move bank nifty to Monday. :grimacing::grimacing::grimacing:

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Reminder: Midcap Nifty expiry today.

Make your contribution

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But 5500/75 = 73.3

@ShubhS9 @nithin

only a straddle or ATM credit spread can be traded. There is no liquidity for fire fighting.

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