regarding crude oil limit.

goldenedge

Active Member
#1
Hi everyone

I use zerodha pi.I have noticed that they have a crude oil limit of 100 futures.

I definitely don't have enough money to day trade 100 futures. I just want to know whether if 100 lots is the limit in mcx.


The real reason why I am worried is because I don't want my strategy to peak out near the 100 lot limit.

(100 lots is not too much considering the daily volume and yeah, I have developed a stable strategy.)
 
#2
Hi everyone

I use zerodha pi.I have noticed that they have a crude oil limit of 100 futures.

I definitely don't have enough money to day trade 100 futures. I just want to know whether if 100 lots is the limit in mcx.


The real reason why I am worried is because I don't want my strategy to peak out near the 100 lot limit.

(100 lots is not too much considering the daily volume and yeah, I have developed a stable strategy.)
Hello golden edge ji, You can definitely trade more than 100 lots. But you will have to enter and exit with multiple order as a single order can only buy/sell mega 100 lots. And also please don't trade with market order and also try to avoid mini lots when trading high volumes or there will be significant slippage. Feel free to ask more questions.
Regards
NCDEX Boss
 

goldenedge

Active Member
#3
Thank you for replying boss. As far as I can understand, you want me to trade less than 100(depending on the spread at that time). I will follow your advice.

One more question, if you consider liquidity/ profitability ratio is crude oil futures better than nifty options? As far as I know, you can enter 1 crore worth of options in nifty without significant slippage and easy to liquidate your position compared to crude oil. I don't have that much amount to trade but just asking.

I find both of the markets very interesting.
 
#4
Thank you for replying boss. As far as I can understand, you want me to trade less than 100(depending on the spread at that time). I will follow your advice.

One more question, if you consider liquidity/ profitability ratio is crude oil futures better than nifty options? As far as I know, you can enter 1 crore worth of options in nifty without significant slippage and easy to liquidate your position compared to crude oil. I don't have that much amount to trade but just asking.

I find both of the markets very interesting.
Hello goldenedge,
The slippage in options depends on if it's OTM or ITM. Deep ITM and OTM calls can cause significant slippage if entered with huge order. ATM options are generally the most liquid.
I think the most important thing is specialisation. Even trading any 3 scrips in NSE or MCX is enough to make as much as you want. But my suggestion is that please trade in futures as they are a bit easier then options to trade. Then if you want you can trade options.
I would suggest that you start with base metals in MCX then gradually as you start to control your emotions and psychology, then you can move to faster moving instruments like Crude Oil, Natural Gas and Nifty.
Specialise

Feel free to ask more questions

Regards
NCDEX Boss
 

goldenedge

Active Member
#5
Thanks boss.

Is there a formula to calculate slippage beforehand? I tried looking online and didnt find it.
 
#6
Thanks boss.

Is there a formula to calculate slippage beforehand? I tried looking online and didnt find it.
Hello goldenedge ji,
I think backtesting will be able to answer that questions. BTW 100 lots can be filled with slippage of 3 Rs. on both Buy/Sell side.
 

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