Options contract enabled/disabled for trading by brokers.

#1
I am with ICICIDirect(I know its sad!). They say "contracts are enabled based on liquidity".

For example. MTNL 50 strike July put is disabled by ICICI. I can see their is liquidity in it on NSE's website.

Why has ICICI disabled it?

Is it enabled by any other brothers?

If contracts (50 Strike July Put) are not enabled and people don't put bids and offers how on earth would they get liquidity in contracts?

Optionwala
 

rajeabc

Well-Known Member
#2
I am with ICICIDirect(I know its sad!). They say "contracts are enabled based on liquidity".

For example. MTNL 50 strike July put is disabled by ICICI. I can see their is liquidity in it on NSE's website.

Why has ICICI disabled it?

Is it enabled by any other brothers?

If contracts (50 Strike July Put) are not enabled and people don't put bids and offers how on earth would they get liquidity in contracts?

Optionwala
I think it is specific to ICICIDIRECT

Which contracts under an underlying are enabled for Future trading? Why is the contract list restricted to specific contracts only under various underlyings?

ICICIdirect enables selected contracts under various underlyings for trading in the Futures segment. Only those contracts, which meet the criteria on liquidity and volume are considered for Futures trading. This is required as there may be a risk of lower liquidity in some contracts as compared to active contracts . As a result, your order may only be partially executed, or may be executed with relatively greater price difference or may not be executed at all. Thereby to safeguard your interest such illiquid contracts are disabled for trading on www.icicidirect.com. The list of contracts is subject to modification by ICICIdirect from time to time.
 
#3
What if you open a contract when its enabled and it gets disabled later on by the broker. How can you square it off if you want to as there will be no liquidity since its disabled???
 
#5
I have seen movement in prices after it being disabled when I look at my portfolio value. This could be due to time decay.

But how do they take care of time decay when they disable the contract and freeze the price?
 
#6
Naturally, it does not make sense to disable trading a prevent a trader from closing out his or her position.

In icicidirect.com:
I found that in the F/O - Options Positons - screen,
using the Square Off link was able to close out (square off) positons for which I got the message " disabled for trading".

Trying to close out an open postion simply using buy/sell from another screen (such as favourites ) for the positon in question gave me the "disabled for trading message".

Good luck !
 

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