10 Questions
What action does the Exchange take when the aggregate open interest exceeds 95% of the market wide position limit for a scrip?
Takes note of open positions of all clients/TMs and allows them to trade only to decrease their positions
What is the primary objective of the Securities Contracts (Regulation) Act, 1956?
To prevent undesirable transactions in securities
What is the criterion for resuming normal trading in a scrip?
When the aggregate open interest comes down to 80% or below of the market wide position limit
What is disseminated by the Exchange at the end of each day?
Aggregate open interest across all Exchanges in the futures and options on individual scrips
What is defined in Section 2(h) of the SCRA?
The term 'securities'
What happens when the Exchange finds that the aggregate open interest exceeds 95% of the market wide position limit for a scrip?
The Exchange takes note of open positions of all clients/TMs
What is the market wide position limit related to?
A scrip
What is the purpose of the Exchange disseminating the aggregate open interest?
To test whether the aggregate open interest exceeds 95% of the market wide position limit
What is governed by the Securities Contracts (Regulation) Act, 1956?
Trading of securities in India
What is the consequence of the aggregate open interest exceeding 95% of the market wide position limit?
The Exchange takes note of open positions of all clients/TMs and they can trade only to decrease their positions
Test your knowledge of options trading concepts, including moneyness, open interest, and tick size. Learn about ITM, ATM, and OTM options and their characteristics.
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