Why is trading restricted for Nifty Midcap contracts?

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Currently, trading is limited to Nifty Midcap’s current week’s option contract and the current month’s futures contract due to the illiquidity of these contracts. Trading illiquid contracts carries risks, including:

Limited Market Depth:

Illiquid contracts may suffer from limited market depth, making it challenging to enter or exit positions at desired prices.

Bid-Ask Spread:

Illiquid contracts often have wide bid-ask spreads, leading to higher trading costs and potentially lower profits.

Increased Volatility:

Due to limited trading activity, illiquid contracts may experience higher volatility, introducing additional risk to trading strategies.