As you can see January OI on this strike is just 4k(3k on put side) so limit is not reached, why kite blocking us from buying it? now weekly is gone, how do we trade bank nifty if monthly is being blocked?
@Meher_Smaran @siva
An open interest limit refers to a broker’s limit on a particular derivative contract like Nifty, Banknifty, etc.
Open interest limits refer to the maximum allowed open interest for a particular derivative contract and not strike-wise limit. In addition to complying with the exchange-mandated initial margin requirements, brokers must also adhere to position limits. Open Interest (OI) indicates the total number of outstanding (open) futures or options contracts in the market.
There is a client-wise limit of 5% of the total number of all derivative contracts for the same underlying and a 15% limit on open interest for trading members (brokers)
so if current month has high OI, we will be blocked from buying 3month away hedge too?
by buying this hedge as intraday can i short ATM as overnight, and convert intraday hedge to overnight as i have short position, will it work?
i know i can short first then buy blocked hedge but it needs huge extra margin or large number of small trades.
Open interest will be on overall bank nifty and not specified to expiry wise. In Overall market Zerodha OI in Banknifty is near to 15%, so only we are allowing very less strikes.
Intraday will be allowed only for 2 monthly expiry due to liquidity issues. You can do this for Dec expiry banknifty options.
how come march options are not blocked. i just tested march 54000 ce via amo order, order went through while jan still gets blocked in amo order.
edit: looks like march has very wide tradable range. only from 55500 strikes are being blocked. can u guys increase range for jan too? 3% range is very low for 3month away expiry