3 Month Contract

riser3

Active Member
#1
3 month futures contract

I am trading with Geojit and I am unable to buy stock futures 3 month contracts. It displays the message Illiquid contract only square off is allowed. But the prices are still changing in that Contract. How is it possible Please clarify?

regards
Brijwanth
 

trader.trends

Well-Known Member
#2
Re: 3 month futures contract

riser3
The contracts are traded on the exchange. Some brokers do not allow trading in far month contracts. You have to contact your broker for that.
 

SavantGarde

Well-Known Member
#5
Hi Riser,

It Is Not A Broker's Decsion Which Contract You BUY As Long As A SELLER Is Ready & Present In The Order Book With His ASK Price.

I Suggest You Get Some Sort Things On Paper Or Email From Geojit & Report It To The Concerned Exchanges & SEBI


Happy & Safer Trading

SavantGarde

Please check out with your broker and please list it here.

I have confirmed from Geojit that they do not allow 3 month contracts and only allow them in case of futures in indices selectively Nifty and Mini Nifty.
 

enygma

Well-Known Member
#8
Mr S.,

Even the great EyeseeEyeseeEyeInDirect says certain futures and options - especially farthest month - are illiquid and are disabled for their own risk management - whatever that means.
It is written all over their FAQs - so I guess it might be the broker's discretion to enable certan contracts ...

Regards,
Enygma.

P.s - I never said it is right. Just that is what is there in the great FAQ of theirs ...

Hi Riser,

It Is Not A Broker's Decsion Which Contract You BUY As Long As A SELLER Is Ready & Present In The Order Book With His ASK Price.

I Suggest You Get Some Sort Things On Paper Or Email From Geojit & Report It To The Concerned Exchanges & SEBI


Happy & Safer Trading

SavantGarde
 
Last edited:

SavantGarde

Well-Known Member
#9
Hi Enygma & Riser,

a) Broker's Risk Management Is To Safeguard Itself From Exchanges For Any Debits On Client's Behalf.

b) It Has Nothing To Do With Trying To Safeguard Client's Interest

c) Broker Cannot Decide What A Client Can & Cannot Buy

d) Broker Is A Mediator For Various Services Between The Exchange, NSCCL & Depository To The Client

e) Just As Exchange Is A Mediator Between The Buyer & Seller

In View Of All The Abovementioned Broker Cannot Decide What A Client Can Or Cannot Buy.


Conditions Under Which A Client's Cannot Make Fresh Entries Are As Follows:

i) Market Wide Limit Reached (Most People Know)

Then There Are These Below Mentioned Points Many Or Most Are Unaware Of....

ii) Broker's Limit Reached For The Particular Scrip In F&O

iii) Client's Limit Reached.

If Broker's Limit Is Reached Then None Of His Client's Can Make Fresh Entry.

If Client's Limit Is Reached Then The Said Client Cannot Add To His/Her Position
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If A Client's Ledger Supports What He/She Intends To Buy Then No Broker Has The Right To Deny His Client's Intention Except In Cases Outlined Above.

Think For A Minute, If The Exchange Has Allowed Somebody To SELL Something Then Why Is The Broker Attempting To Discourage The Buyer From Buying....Under The Guise Of Trying To Protect The Client.


Happy & Safer Trading

SavantGarde