What is Open Interest and are there any limits set by FYERS?
Open Interest (OI) refers to the number of active Derivatives contracts in the market at a given time. It serves as a critical gauge of liquidity and can provide insights into potential price shifts, equipping you with valuable decision-making information. You can view the open interest for all the strike price on the options chain available on our platforms.
At FYERS, we adhere to the following OI limitations:
Clients have an Open Interest limit of 5%. If you, as a client, exceed 5% of the total derivative contracts, the specific underlying contract will be unavailable for further trading.
On the broader scale, if our entire client base utilises over 15% of the total open interest for a particular underlying contract, we disable that contract for trading on FYERS.
Note: Currently, FYERS maintains optimal OI limits, allowing our clients hassle-free trading even in Deep OTM options.
Related Articles
Why are stocks unpledged when clearing member limits are exceeded?
Clearing members have pre-set limits defined by the Clearing Corporation regarding how many shares of a specific company can be pledged to them. When this limit is crossed, the pledged shares are automatically unpledged and returned to the client's ...
Is there any limits for futures orders on the NSE?
When engaging in futures trading on the National Stock Exchange (NSE), it's crucial to operate within set price and quantity parameters. For Stock Futures, your order price is required to be within a 20% range—above or below—the previous day's ...
What is the freeze quantity in currency derivatives set by the exchange?
The freeze quantity refers to the maximum number of lots that you can trade in a single order. This limit is set by the exchange at 10,001 lots for both currency and cross-currency derivatives contracts. If you attempt to place an order that exceeds ...
Is there any limit to the number of orders placed via order slicing at FYERS?
Yes, FYERS has set a limit on the number of orders that can be placed using order slicing, applicable to both initiating new positions and exiting open positions. The limit is set at a maximum of 100 orders, regardless of the freeze quantity for the ...
What is FYERS RMS policy for trading?
At FYERS, we believe in fostering a safe and efficient trading environment. As part of our commitment to safeguarding your interests, we have set forth a comprehensive Risk Management System (RMS) policy. Here's a breakdown: RMS Policy on Options ...