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Limit of Open Ineterest

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  #1  
Old 28th August 2006, 12:04 PM
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Question Limit of Open Ineterest

Hello everyone,

I have a question about limit of open interest for any contract. There is always a limit which is maintained by NSE on any derivative contract. My question is, how can we know when a contract is reaching its limit? Who and how fix this limit? and what is the significance of this limit?

Experts please post your views on this...

This will be great help for many of us...

Thankyou.

Subrata Bera.
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Old 28th August 2006, 12:22 PM
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Default Re: Limit of Open Ineterest

Client Level Position Limits

The gross open position for each client, across all the derivative contracts on a underlying, should not exceed:
- 1% of the free float market capitalization (in terms of number of shares)
or
- 5% of the open interest in all derivative contracts in the same underlying stock (in terms of number of shares)
whichever is higher.

Client level position limits underlying-wise, are available to members on NSE's website.
The list of contracts that have crossed 95% of the limit is put on the NSE website front page under the link "Securities in ban period - F&O segment"
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Old 28th August 2006, 12:48 PM
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Default Re: Limit of Open Ineterest

Hi Ivan,

Thankyou very much for your quick response.

As I am new to derivative trading, I want to study this topic even more. Is there any site (NSE or other) where I can find details related to this?

Subrata Bera.
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  #4  
Old 28th August 2006, 12:55 PM
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Default Re: Limit of Open Ineterest

Google whatever you want. I've found it to be the best source of information on any topic under the sun. If you have any specific query though, feel free to ask...
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Old 28th August 2006, 01:07 PM
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Default Re: Limit of Open Ineterest

You are right Ivan.

By the way, thanks for that.

I will be back soon.

Subrata Bera.
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Old 31st August 2006, 07:09 PM
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Default Re: Limit of Open Ineterest

hey bera bhai,

fisrt go to all indian brokerage web sites. they have lovely links called education/school/learning etc...you will find tons of info there...goog will give u mostly foreign sites...there mkts are very diff from ours.
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  #7  
Old 24th September 2006, 11:24 AM
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Default Re: Limit of Open Ineterest

hi subrat
so far as limits is concerned,normally it flashes by brokerage houses,or if not,ur order will not entertain in that particular stock,any way i learnt from experience that it happens normally in those shares ,where strength is weak.
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