Comment on Futures & Options Filters

Matti commented on 29 Jan 2018, 03:23 PM

Falguni, the exchange has a limit on how much percentage of the marketwide OI a given trading member can have. As such, in order to avoid hitting that limit, we don’t allow far out of the money contracts, as if the limits are hit, new orders and all pending orders are cancelled by the exchange. To avoid this, the tradable strikes are limited. This also mitigates the inherent risks of trading deep OTM options. Read more about this here.

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