What are Open interest limits?

In addition to adhering to the exchange mandated initial margin requirements, brokers are also subject to position limits. Open Interest (OI) is a number that tells you how many futures (or Options) contracts are currently outstanding (open) in the market. There is a client-wise open interest limit of 5% of the total number of all derivative contracts for the same underlying and a 15% open interest limitation for the trading members (brokers)
Was this helpful?

Haven't found the Answer to your Question?

Raise a Help Ticket