Can I Trade Far OTM Options on FYERS?
Yes. FYERS allows trading far out of the money options with guardrails to protect you from poor fills in thin markets. Availability and order-type rules differ for index versus stock contracts, and liquidity can be limited at deep strikes.
Availability
Index options
- Buying: Allowed within about 20% of LTP.
- Selling: No specific FYERS strike boundary beyond exchange rules.
Stock options
- Buying: Allowed within about 20% of LTP.
- Selling: Allowed within about 30% of LTP.
Example: If NIFTY LTP is 15,000, a 20% window implies strikes roughly from 12,000 to 18,000.
Order type rules
- Prefer limit orders for far OTM contracts due to wider spreads and lower depth.
- Stock options: Market orders may be restricted in illiquid or far OTM strikes. Place limit orders.
- Index options: Market orders are generally available only for current week or current month expiries. For further expiries or thin strikes, use a limit order.
Risk controls you should expect
- Execution protection: FYERS may convert or reject marketable orders that could fill at unfavourable prices.
- Premium holds on extreme strikes (shorts): For very far ITM or OTM overnight shorts, the exchange can hold premium as cash collateral. Do not rely on that premium for other trades until released.
- Bands and filters: Exchange price bands, LTP checks, and MPP style protections can affect which prices are accepted.
Liquidity considerations
- Far OTM options often have low volumes and wider spreads.
- Use limit prices near the best bid or offer and consider staggered quantities.
- For spreads, use Basket Orders so the combined margin and execution sequence are handled correctly.
For far OTM trades, always use limit orders, check liquidity and bands, and do not rely on premium from short far strikes for immediate reuse.
What if...
| Scenario | Outcome |
|---|
| I want to buy far OTM index options | Allowed within about 20% of LTP. Use limit orders for better control. |
| I want to sell far OTM index options | No specific FYERS strike boundary. Exchange rules apply. Prefer limit orders. |
| I want to buy far OTM stock options | Allowed within about 20% of LTP. Market orders may be restricted. Use limit orders. |
| I want to sell far OTM stock options | Allowed within about 30% of LTP. Use limit orders due to low depth. |
Last updated: 06 Nov 2025
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