Can I Trade Far OTM Options on FYERS?
Yes. FYERS allows trading far out of the money (OTM) and in the money (ITM) options based on RMS limits applicable to different product types. Availability may vary depending on liquidity, expiry, and exchange-level risk controls.
Availability
Example: If NIFTY LTP is 25,000:
- MIS/CO/BO: Strikes roughly between 22,500 and 27,500 may be allowed.
- NRML: Strikes roughly between 15,000 and 35,000 may be allowed.
Order type rules
- Prefer limit orders for far OTM contracts due to wider spreads and lower market depth.
- Market orders may be restricted in illiquid or extreme ITM/OTM strikes.
- For better execution control, use limit prices close to the best bid or offer.
Risk controls you should expect
- Execution protection: Orders may be rejected or converted if execution risk is high.
- Liquidity checks: Contracts with low volumes or wide spreads may have additional restrictions.
- Exchange-level validations: Price bands, LTP checks, and market protection rules can affect order placement.
Liquidity considerations
- Far ITM and OTM contracts may have low liquidity and wide spreads.
- Execution prices can vary significantly during volatile market conditions.
- For multi-leg strategies, Basket Orders can help manage execution sequence and margin efficiently.
Tip: Use limit orders while trading far ITM or OTM options to avoid unfavourable execution prices in low liquidity contracts.
What if...
| Scenario | Outcome |
|---|
| I want to trade far OTM options using MIS, CO, or BO | Trading is allowed within approximately 10% ITM & OTM from the underlying LTP. |
| I want to trade far OTM options using NRML | Trading is allowed within approximately 40% ITM & OTM from the underlying LTP. |
| My market order gets rejected | This can happen in illiquid far strikes. Place a limit order instead. |
| The option contract has low liquidity | Wide spreads and execution delays may occur. Use limit prices and staggered quantities where required. |
Last updated: 13 May 2026
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