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What are Open interest limits?

In addition to adhering to the exchange mandated initial margin requirements, brokers are also subject to position limits. Open Interest (OI) is a number that tells you how many futures (or Options) contracts are currently outstanding (open) in the market.

There is a client-wise open interest limit of 5% of the total number of all derivative contracts for the same underlying and a 15% open interest limitation for the trading members (brokers)

Check out this page on the NSE website for more information. Also to learn more about open interest and its implications read this chapter on Varsity.