Comment on Zerodha - Margin Policies

Hanan commented on 20 Nov 2014, 06:55 PM

Contracts traded (volume) is something that is happening on that particular day. Open interest refers to the number of contracts that are active for that particular scrip. Total Open Interest refers to the total number of active contracts for that entire derivative chain. So even if very few contracts were traded today, it’s possible that a lot more were traded before. Also, since the stock split happened for SBIN everybody’s contracts just increased 10 fold. 🙂

The volume on the next month contracts are always gonna be much lesser than the near month contract until the near month contract has expired. You can enter positions, but you can’t expect a high amount of liquidity.

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