Nifty Future volumes shrinking fast, out of top 20 soon?

[headstrong007]

For past few years more traders shifting to Index options due to various reasons... like heavy transaction taxes, high STT, high Stamp duty in future segment
After launch of weekly options things are getting worst..
Nifty Volume is shrinking faster...

Today is not a typical range bound day...But Nifty 40pts and Bank Nifty 200 pts one way move..

Still probably first time Nifty and Bank Nifty on last two spots of Top 20 F&O list.. Almost out numbered by weekly options..

Soon we may not see Nifty/Bank Nifty on Top 20 list..

IMO.. High volume Nifty/Bank Nifty future traders can face liquidity crisis soon..Good for Index option traders.. better liquidity and big fast move,, fast reversal.. as well as more gap up-down possible...

Those who trade Index f&o.. Lets discuss various outcome of this new era..Options kicks out futures from Top 20 list..
I never saw Nifty Future out of Top 20 list..Average volume is decreasing fast...

Today Nifty was Last Boy in the Class..

View : Option Chain | Trade Statistics
as on Jan 16, 2017 15:30:30 IST  refresh
Instrument Type	Underlying	Expiry Date	Option Type	Strike Price	Prev Close	Open Price	High Price	Low Price	Last Price	Volume
(Contracts)	Turnover * 
(lacs)	Premium
Turnover(lacs)	Underlying Value
Index Options	NIFTY	25JAN2017	PE	8,400.00	60.00	69.00	74.20	44.70	46.80	1,89,564	12,02,074.14	7,820.94	8412.80
Index Options	BANKNIFTY	19JAN2017	CE	19,000.00	92.35	79.65	193.70	70.35	183.00	1,38,485	10,59,473.95	6,987.95	19096.45
Index Options	NIFTY	25JAN2017	PE	8,300.00	31.00	35.45	38.40	21.15	22.55	1,66,952	10,42,688.28	3,412.08	8412.80
Index Options	BANKNIFTY	19JAN2017	CE	19,100.00	59.90	48.90	130.00	41.40	123.00	1,34,590	10,33,060.08	4,792.48	19096.45
Index Options	BANKNIFTY	19JAN2017	PE	18,800.00	85.25	85.20	100.75	27.00	31.25	1,34,726	10,15,912.72	2,773.20	19096.45
Index Options	NIFTY	25JAN2017	CE	8,500.00	29.95	20.00	34.70	20.00	31.50	1,58,074	10,11,047.23	3,325.48	8412.80
Index Options	BANKNIFTY	19JAN2017	CE	19,200.00	37.90	32.10	84.25	24.00	77.95	1,26,802	9,76,761.39	2,922.03	19096.45
Index Options	NIFTY	25JAN2017	CE	8,400.00	75.20	63.85	86.00	56.85	80.10	1,51,157	9,60,544.54	8,255.44	8412.80
Index Options	BANKNIFTY	19JAN2017	PE	18,900.00	122.75	114.00	143.00	40.00	46.70	1,13,861	8,64,045.58	3,256.42	19096.45
Index Options	NIFTY	25JAN2017	PE	8,200.00	16.45	17.85	19.70	10.80	11.10	1,39,206	8,57,554.55	1,437.65	8412.80
Index Options	NIFTY	25JAN2017	CE	8,600.00	9.25	5.40	10.50	5.40	8.80	1,21,444	7,84,067.06	753.26	8412.80
Index Options	BANKNIFTY	19JAN2017	PE	18,700.00	58.50	59.95	68.85	18.30	21.40	1,04,619	7,83,959.55	1,409.43	19096.45
Index Options	BANKNIFTY	19JAN2017	CE	19,300.00	22.95	19.85	53.30	13.05	47.00	1,00,884	7,80,221.93	1,397.45	19096.45
Index Options	BANKNIFTY	19JAN2017	PE	19,000.00	174.25	171.80	200.00	59.00	67.50	94,685	7,23,076.02	3,470.02	19096.45
Index Options	BANKNIFTY	19JAN2017	PE	18,500.00	26.40	22.20	30.75	8.65	9.50	92,413	6,84,416.96	560.76	19096.45
Index Options	BANKNIFTY	19JAN2017	CE	19,500.00	8.30	6.65	18.90	4.10	15.95	87,632	6,83,973.02	443.42	19096.45
Index Options	BANKNIFTY	19JAN2017	CE	19,400.00	13.60	11.90	32.00	7.05	28.30	81,059	6,29,679.28	661.44	19096.45
Index Futures	BANKNIFTY	25JAN2017	-	-	18,945.60	18,950.15	19,168.15	18,895.55	19,145.15	75,404	5,74,950.98	-	19096.45
Index Options	BANKNIFTY	19JAN2017	PE	18,600.00	39.30	35.00	46.20	12.50	14.50	76,629	5,70,806.36	686.60	19096.45
Index Futures	NIFTY	25JAN2017	-	-	8,417.70	8,404.00	8,444.00	8,385.05	8,435.00	81,879	5,17,084.31	-	8412.80
  
Note:
* In case of Option Contracts "Turnover" represents "Notional Turnover"

https://www.nseindia.com/live_market/dynaContent/live_watch/derivative_stock_watch.htm

 

[headstrong007]

Making money using option buying is always much more difficult than trading in future....
in future only right direction is enough.
but in option buying we need both direction and timing.. and we all know, timing the market is most difficult part..that is why option trading is much more difficult than future trading..

so with the increasing volumes in options... winner percentage may decrease further...more stop loss hit for swing traders also..

One thing is good for traders.. we see large move every week in bank nifty due to weekly expiry..but is that making money easy now for all...or our market is heading for more professionals game?

share your view..

 

[TradeOptions]

Thanks for sharing this information brother. Yes, the liquidity situation is going bad, instead of improving.

 

[headstrong007]

more details...

Even 6 years ago ..earlier in 2011 Nifty Turnover was 12-15 Lakh(lakh)..
Now.. in 2017 it is 5 to 6 lakh, 2 week before budget..

See rare historical data...Now it is around 5-6 lakh..
In 2011... 2 week before budget on 18th nifty volume 17-18 lakh(lakh)

Cost Inflation Index was around 700 then, now it is 1100.. So 17 lakh is equvalent to 27 lakh in 2017..
So actual Nifty Future turnover already reduced to less than 30%.. so as the liquidity.. even more as lot size increased 150%..

 

[aja]

No problem with volume shrinking.If that happens,We will have something very interesting soon
May be Nifty weekly options or weekly stock options.

 

[headstrong007]

No problem in options.. better..
but can't trade in options always..
not good for futures..
already facing higher slippage..liquidity problem in Nifty & Bank Nifty futures..since lot size increased and weekly options introduced...

We will have something very interesting soon regarding to price movements..

 

[aja]

I dont trade options now,but I believe traders life has became more beautiful and profitable since weekly options has been introduced.Even a newbie with basic knowledge of options can make money.

How many lots are you trading with BNF?
yes,slippage is a big issue even with 800Q BNF

 

[headstrong007]

I m using SLM mostly with good volume, so facing more slippage now....

Weekly options gave us more opportunities...traders was shifting to options since past few years... since 2010-2011...but in past 2-3 months,,,Index Future Turnovers drastically reduced... not good at all for market..

 

[aja]

Yes,SL-M orders give a lot of slippage while trading volatile scrips because SL-M is in essence a market order.When the trigger is hit,a market order is sent.
You can keep a SL-L to avoid the slippage.Its better than SL-M.

You ignored my query on lot size above :annoyed:

 

[headstrong007]

Can't use SL-L it will be pending most of cases...using smaller tf..

You ignored my query on lot size above :annoyed:

najar na lag jaye...