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.
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