What are Open interest limits?
Open interest limits
(WEB)
refer to the maximum allowed open interest for a particular derivative contract. In addition to complying with the exchange-mandated initial margin requirements, brokers must also adhere to position limits. Open Interest (OI) indicates the total number of outstanding (open) futures or options contracts in the market.
There is a client-wise limit of 5% of the total number of all derivative contracts for the same underlying and a 15% limit on open interest for trading members (brokers). To learn more about open interest, visit zerodha.com/varsity/chapter/open-interest.
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