Trading in MIDCAPNIFTY

@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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Quantity Freeze limits and the client-wise position limits are different.

The quantity freeze limits how much quantity you can buy or sell in a single order.

The client-wise position limit is the number of quantities one can hold. This is set at 5% of the overall Open Interest limit by the exchanges. You can learn more about this here: What are Open interest limits?

Yes I know that
Check the freeze quantity - 5500