What kind of liquidity is there in bank Nifty between 2 to 3pm (low , medium,high)?

Usually what kind of liquidity is there in bank nifty between 2pm to 3pm on non expiry days?

The liquidity rises due to post lunch hours and traders taking btst and other positions

Very liquid.

1 Like

And what about liquidity in terms of buying options in that time slot??

U r talking liquidity in terms of buying or selling or both ??

Liquidity will be there and will depend on market sentiments. If the market seems bullish for the next day, there will be more buying of call options and selling of put options. If the markets are bearish for next day, buying will increase for put option and selling will increase for call option. In both the cases, the liquidity will be high.

Does it mean we can easily buy and sell higher quantities( around 2000 )for pe or ce options buying in bank nifty in that time slot ?

Giving it a number would not be right, but you will have a high chance of getting the order fulfilled. Again, liquidity depends on many other factors as well so do check the liquidity in the market depth option on kite before placing any bets.

But can we expect with 2000 quantities to get smooth entry and exit both if we do scalping in 5min timeframe in bank nifty options buying ?

Most likely yes, but again no confirmed answer.

Also, you can’t place a single order of 2000 quantities in Banknifty due to limits. Hence use iceberg orders on Kite to execute these orders. Iceberg orders help clients to place large orders (above the limits set by the exchanges) by breaking them into multiple legs. More information on iceberg orders can be found on the below-mentioned link.

Iceberg orders - What are Iceberg orders, and how to use them?

When someone exiting position made through the iceberg ,would it be automatically exited in legs /stages or manually it has to be done ??

Iceberg can be used to place orders. So you can place a buy order as well as a Sell order. The main purpose they solve is to help place large orders. So you can use iceberg orders to exit your positions as well.

1 Like