Certain long dated, Deep ITM and Deep OTM options are very illiquid. As a result they have a very high Bid/Ask spread, they may very low or NIL volumes, very low or NIL Open Interest (OI). Regulators have also introduced guidelines to prevent 1) Illiquid options from being used to create artificial profit or loss 2) prevent fat finger errors 3) Prevent orders being placed far away from their intrinsic values. To complement the regulatory guidelines and also to safeguard our clients' interest, Illiquid Options and futures are blocked as per Navia’s Risk Management policy. Imagine being stuck with a position in the absence of counter parties to cover the same. For example if we allow to buy an illiquid contract, you would be able to create a position in it by buying or selling the contract. A risk arises when you are unable to square off the position due to non-availability of counter party which is highly common in illiquid contracts. As a result of this, you  would necessarily be required to bring in additional margins, failure of which would attract penalties These penalties will be on the broker for not taking due diligence to prevent trading in illiquid contracts. To avoid these scenarios also we block illiquid contracts.

We have blocked trading in certain options and Futures as per the scenarios listed out below for our Rocket and Rocket Plus platforms.

ROCKET Trading Platform 

Based on Expiry

Based On Volume

If any option or Future contracts in any segment and any expiry record a traded volume of Zero on T day, then such contracts would be blocked for trading on T+1 day.   

Apart from this, fresh positions can be taken in Stock Options only in MIS mode on the expiry date of the options contract.

ROCKET PLUS Trading Platform 

Based on Expiry

Nifty Index Options – 7th month onwards

Index Weekly Options – 1st week of next month contract onwards 

Stock Options – 3rd month onwards

Stock Futures - 3rd month

Commodity Futures – 3rd month onwards  

Commodity Options – 2nd month onwards  

Currency Options – 2nd month onwards  

Currency Weekly Options – 3rd weekly contract onwards 

Based On Strike

Based on Volume

Any Contract which has 0 Volume will be blocked.

Based on Open Interest (OI)

Any Contract which has 0 open interest will be blocked.

Apart from this, fresh positions can be taken in Stock Options only in MIS mode on the expiry date of the options contract.