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Why did my Banknifty/Nifty option order get rejected?

Strike price is outside the allowed range. Try a strike closer to the spot price.'

If orders to open new long positions in Banknifty/Nifty options are placed outside the range allowed by the mandated Open Interest restriction (i.e OTM, deep OTM strikes & deep ITM strikes), the order is rejected & the above error is displayed. 

The position limit of a Trading Member (Zerodha in this case) in equity index options contracts (Banknifty/Nifty option contracts in this case) is higher of Rs.500 crores or 15% of the total Open Interest (OI) in the market in Banknifty option contracts. Since Zerodha as a Trading Member is breaching the 15% limit of total OI in Banknifty option contracts, we are blocking Banknifty option trading outside of the range specified.

Note- You will be allowed to take fresh short option positions. The restriction is only for long options positions.

For example, let's assume Bankniftyis trading at 24000 - and due to the open interest restriction the RMS team has set the range as 1% from the spot - you will not be allowed to place a buy order 240 points above or below, i.e you will have to place your buy order between 23760 - 24240

Note: To check the allowed range for Bank Nifty/Nifty options for the trading day check the margin calculator.

Please refer this post for more information.