Day Trading Stocks & Futures

[travi]

One query related to 'Volume' and 'Change in OI' on NSE option chain for scripts under F&O ban.
As during ban period, one is only allowed to close open position and cannot add new position, Number of contracts traded, i.e. Volume should equal Change in OI. But when I check on option chain for securities like SAIL, IDEA, which are in F&O ban today, it does not seems to be the case. There is difference in volume traded and Change in OI.
Request if someone can help clear my understanding on the same. Thanks.

can you post images of your query ?

Nowhere did NSE say your order will be rejected only penal/disciplinary action will be taken for increasing position.
Retail brokers put a layer of security over their clients trades but that's not true for all types of NSE members esp those who have direct access.

so just as an example, i had sold 10 lots a week ago, now i bought 4 today and then sold back 1.

Day open OI = 10 and chg in OI -3 but volume is 5.
so why should they be equal and my net position is also decrease in overall position( OI ) ?

Same math for counter-party, they could have same positions reduced or someone has actually increased OI and will get flagged EoD.

 

[bkb]

can you post images of your query ?

Nowhere did NSE say your order will be rejected only penal/disciplinary action will be taken for increasing position.
Retail brokers put a layer of security over their clients trades but that's not true for all types of NSE members esp those who have direct access.

so just as an example, i had sold 10 lots a week ago, now i bought 4 today and then sold back 1.

Day open OI = 10 and chg in OI -3 but volume is 5.
so why should they be equal and my net position is also decrease in overall position( OI ) ?

Same math for counter-party, they could have same positions reduced or someone has actually increased OI and will get flagged EoD.

Thanks for the reply.
In reference to your above mentioned example, You have outstanding position of 10 lots and you bought back (reducing open position) is understandable. But how can you again sold back 1 lot as security is under ban? My understanding is you shall not be able to open a new /fresh short position.

I have tried to add image for option chain of Idea for current month expiry from NSE site. Idea is in ban period. If we see volume and change in OI for call strike 11.00 and 12.00, there is difference, which in my understanding should not be the case.

 

[travi]

View attachment 45529

Thanks for the reply.
In reference to your above mentioned example, You have outstanding position of 10 lots and you bought back (reducing open position) is understandable. But how can you again sold back 1 lot as security is under ban? My understanding is you shall not be able to open a new /fresh short position.

I have tried to add image for option chain of Idea for current month expiry from NSE site. Idea is in ban period. If we see volume and change in OI for call strike 11.00 and 12.00, there is difference, which in my understanding should not be the case.

bhai, realtime reporting is not possible, atleast with current infra. Even under new peak margin rule, there are upto 4 random snapshots.
All reconciliation happens EoD.
It is still not clear whether buying back that 1 qty is a penalty or not but afaik it doesn't come up in reconciliation.
Also, buy buying back, im not "increasing" my OI from day open( or PDC ), it is still net decrease.

And text in bold, where it says you shall not ? maybe your retail broker will prevent you, but a direct member can put the trade. Exch is not going to reject it.

 

[bkb]

Thanks travi bhai. Really helpful and clear explanation of practical applicability of rules.

 

[TraderBharath]

bhai, realtime reporting is not possible, atleast with current infra. Even under new peak margin rule, there are upto 4 random snapshots.
All reconciliation happens EoD.
It is still not clear whether buying back that 1 qty is a penalty or not but afaik it doesn't come up in reconciliation.
Also, buy buying back, im not "increasing" my OI from day open( or PDC ), it is still net decrease.

And text in bold, where it says you shall not ? maybe your retail broker will prevent you, but a direct member can put the trade. Exch is not going to reject it.

No, we couldn’t open any fresh positions when securities are under ban. Now even I have doubt on volume.!!!

https://support.zerodha.com/categor...ion-scrips-enter-ban-period-what-does-it-mean
“When the stock F&O contracts are in the ban period, no fresh positions are allowed for any of the futures and options contracts in that stock. You will only be allowed to exit the existing positions during this period. The ban is reversed only if the open interest falls below 80%”.
Once you exit, it should become fresh position.

 

[travi]

No, we couldn’t open any fresh positions when securities are under ban. Now even I have doubt on volume.!!!

https://support.zerodha.com/categor...ion-scrips-enter-ban-period-what-does-it-mean
“When the stock F&O contracts are in the ban period, no fresh positions are allowed for any of the futures and options contracts in that stock. You will only be allowed to exit the existing positions during this period. The ban is reversed only if the open interest falls below 80%”.
Once you exit, it should become fresh position.

Read previous post. Dont look at everything as retail trader with retail broker angle
Ask what a trading member can do, and market makers have their own direct access.

 

[TraderBharath]

Read previous post. Dont look at everything as retail trader with retail broker angle
Ask what a trading member can do, and market makers have their own direct access.

Did some digging on this, NSE allows intraday trading in this( probably MIS order) but EOD oi shouldn’t increase for a trading member, even retailers . But Z blocks it entirely and allows on squaring off,don’t know if other brokers allow it.

 

[john302928]

Hi
Could anyone help me understand this statement. I was reading an article about fundamental analysis. Please see the image below. I would like to know how he inferred that working capital is under control by using CFO and PAT. Thanks

 

[cinderblock]

To go from PAT to CFO, you need to add/subtract working capital (WC) changes.

If WC change is positive, you need to subtract that number from PAT.
If WC change is negative, you need to add those changes to PAT. Thus CFO>PAT.

Usually, if WC changes are negative from the past year to current year it's a good thing because it means company operations are not holding up cash. For example, when the company can collect receivables from customers faster than last year.

 

[Dr. Jan Itor]