@namitjain2890 @siva @nithin
What are Volumes and open interest in American index option on weekly basis ?? Are they more then Nifty index options ?? ( Is US options market bigger & more liquid then india??)
And on which exchange it is traded on ??( CME,CBOE,NYMEX OR Which one ??)
But can you answer which one is most traded index i am little bit confused Between SPDR S&P 500 ETF Options , E-MINI S&P 500, SPY , SPXW etc which one is most liquid one & where it is traded ( CME,CBOE,NASDAQ ??? )
Numbers I am not sure, but they are public, but compared to Nifty, they are much more liquid given that the entrie world is allowed to trade in their markets and the barrier to entry is pretty low.
Do not look at contracts traded to judge liquidity, Nifty might win there, notional value traded is more important. 1000 shares traded of a 1000 rupee share is more liquid that 5000 shares of a 10 rupee share.
Their lot size is locked @ 100 shares per lot, ours are decided based on notional value hence contracts traded comparison is not apples to apples. Not saying one method is better than the other, just that there’s a difference.
As you said let us not consider liquidity based on contracts seen in their OI but still can you explain me more elaborately like Suppose i want to trade 1 Contract iron condor on S&P 500 SPDR CALL : 328 S@ 0.21 329 [email protected]$ / PUT 316 S@ 0.74$ 315 B@ 0.56$, What would be margin required considering they only block SPAN & Not Exposure margin ??
Now i can see few thousands contracts on their weekly OI for above strike if you can tell Approx. Margin required to enter the trade we can compare it to nifty option for similar strike ??
Since it’s defined risk, just calculate the max risk possible in that trade, that’ll be the margin. In this case width of the strike is 1 dollar, so 100 dollars is the risk, minus 25 dollars premium collected so margin will be 75 dollars for a lot, which is the max you can lose.
I don’t know how that’s related to liquidity in anyway, but this is the margin.
You can look at the OI, just derive the notional value from that and you’ll know how much money is involved
India has no restrictions. Max qty is only for per order here and that’s for protection so that we don’t accidently add an extra 0 and place a big order. No idea how it is over there. Again, nothing to do with liquidity.
Long story short, liquidity is much better there. If you find not liquidity issues in Nifty, it’s almost guaranteed you won’t have issues with S&P 500.