BIG NEWS - Sensex Options Expiry

Dear All,

This time it’s Sensex. BSE is introducing Sensex options from 15th May’23.

Lot size - 10

Expiry day - Friday.


I haven’t seen anyone trading in derivatives on BSE.

I don’t know how it’s done. Could you please throw some light?

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Hi - No idea yet. Just sharing the news. Trend will catch-up over the coming months. In 2024 it will be more liquid. Then, every broker will have Sensex option chain.

Hey @pratik01 ,

Based your experience, if you can also explain the potential advantages of trading in BSE over NSE in the different segments?

Thanks. Any basis of saying that in 2024 it will be more liquid?

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Hi @amit - There is no such advantage/disadvantage for trading in particular segment. It’s just what you prefer.

Some prefer more volatile market hence they trade in banknifty, others prefer less volatility so it’s nifty. There are many traders who trade in commodities segments as well. It’s all about your style.

At the end-of-day it’s how much you take home that matters.

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thanks @pratik01, I thought BSE might be cheaper in terms of charges and may help in reducing the breakeven.

Hi @Shally - it’s just a calculated prediction. Initially when finnifty started option chain it was very less liquid for initial 1-1.5 years. Later people started trading in finnifty it became more liquid. Now finnifty trend is getting larger and larger. Same will be for sensex. Let’s hope it will be better.

I doubt it. There’s one key aspect that you’re seem to missing. See Finnifty was just a product in the already established derivative market of NSE. So, it was still easier to gain traction for Finnifty.

Further, as far as I know, both NSE and BSE launched derivatives in Index (i.e., in Nifty and Sensex respectively) in June 2000. But BSE is nowhere near to NSE, not even in cash segment. In derivatives, volumes are virtually non-existent on BSE.

So, I feel this announcement is just a lot size reduction announcement and wouldn’t change anything.