Wanted to understand why does no one trade in stock options in BSE?
And if there is no liquidity in stock options of BSE, why is Dhan still offering it? Doesn’t look good when market depth is zero of almost all stock options. @PravinJ
Hi @tarun101 Yes, stock options trading generally has liquidity issues irrespective of exchanges… these have further surveillance measures by exchanges + risk measures by brokers. In our case, it is guided by Risk Management Policy - Risk Management Policy | Dhan
If they are illiquid, risky - then orders will be rejected by our Order Management Systems based on this RMS policy.
ps: It is not just risky for traders, also for brokers. We have to maintain additional capital with exchanges.
Yea, but the question is, unlike NSE, the BSE stock options have no depth, so why is dhan offering it in the first place ?
On exchange you enable a segment - BSE F&O or NSE F&O… These are not independent of others., similarly liquidity of BSE BANKEX is limited.
That’s my understanding, I will still check with compliance, but not sure if selective sub-segment exist.
Zerodha, doesnt show stock options or stock futures from BSE, only NFO is visible.
We can’t control or comment on what other brokers do or not do.