OTM Strikes beyond a certain range can become extremely illiquid and can cause freak trades due to the wide bid/offer spreads. Therefore, as per our RMS policy, a restriction has been placed for option Buying outside the allowed range and if you are an Index options seller, there is no issue.
Index options strike range allowed for Buying – 20%
Stock options strike range allowed for Buying – 20%
Note: Option premium received will not be available to trade on the same day. However, you can use it to take fresh positions from the next trading day.
Stop loss & Target Range for stocks & futures for CO & BO is minimum 0.05% & Maximum 5% of the LTP.
If the MTM loss for the said position in your account is between 70% to 75%, such positions will be monitored and our RMS team will square-off these postions. To avoid RMS square-off you need bring in more funds to hold your positions across exchanges.
RMS policies are subject to change at our discretion without notice depending on the market situations and underlying volatility. However, we will keep you updated about the changes on the Notice Board!
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