Hello,
I trade options basically on the ''buy'' side of puts and calls...
Lets take for example, SBIN option chain...
http://ift.tt/2bGpnSO
Lot size is 3000
For 270 call, I see that 2039 contracts were traded... I'm a direction biased trader so... I wanted to buy AS MANY CALLS AS POSSIBLE (after anticipating upward move in SBI... take this as an example...)
Say.. I wanted to buy 1000 calls on a particular day... My average fill price would be (Hi+Lo)/2
In this case of 270 call, (Hi+Lo)/2 is 10.3... So... I need 10.3*3000*1000 in my account to buy those many options... Rs. 3,09,00,000. (lets keep the ''bigness'' of the numbers aside for now and just focus on the concept at hand please :) )
My question is.... IS THERE ANY LIMIT ON THE NUMBER OF OPTION CONTRACTS I CAN BUY ? (:D Dont say I'm limited only by the amount of money I have in my acc... ) Does NSE impose any limit on how many contracts an individual trader can buy ?
I dont belong to an institution/ pension fund/hedge fund/ etc../ etc.... I purely want to buy LOADS AND LOADS OF options as an individual trader....
That's the scenario.... please answer my question... I checked the nse website for position limits... but could not understand anything... its too sophisticated for me to understand... so... I humbly request some professional traders here to explain this...
Sincerely,
Sai.:)
I trade options basically on the ''buy'' side of puts and calls...
Lets take for example, SBIN option chain...
http://ift.tt/2bGpnSO
Lot size is 3000
For 270 call, I see that 2039 contracts were traded... I'm a direction biased trader so... I wanted to buy AS MANY CALLS AS POSSIBLE (after anticipating upward move in SBI... take this as an example...)
Say.. I wanted to buy 1000 calls on a particular day... My average fill price would be (Hi+Lo)/2
In this case of 270 call, (Hi+Lo)/2 is 10.3... So... I need 10.3*3000*1000 in my account to buy those many options... Rs. 3,09,00,000. (lets keep the ''bigness'' of the numbers aside for now and just focus on the concept at hand please :) )
My question is.... IS THERE ANY LIMIT ON THE NUMBER OF OPTION CONTRACTS I CAN BUY ? (:D Dont say I'm limited only by the amount of money I have in my acc... ) Does NSE impose any limit on how many contracts an individual trader can buy ?
I dont belong to an institution/ pension fund/hedge fund/ etc../ etc.... I purely want to buy LOADS AND LOADS OF options as an individual trader....
That's the scenario.... please answer my question... I checked the nse website for position limits... but could not understand anything... its too sophisticated for me to understand... so... I humbly request some professional traders here to explain this...
Sincerely,
Sai.:)
Position Limits
