Noob question:

[amlearning]

Dear friends,

I'm just a beginner and going through various posts in here and it's very informative.

One question came up while I was reading thru the posts.

Suppose, someone (assume Bill Gates) has got enough cash in pocket to buy away all available future contracts available in the F&O market for a particular stock (say Infy).
Is it possible that the very next day there would be no contracts available of that particular stock for rest of buyers (us)? Or new contracts would be automatically generated considering Bill sells only after 1 month?

Is the number of contracts (futures) available limited?​

 

[amlearning]

No help yet! surprising

 

[Sunny1]

Yes ...number of contracts open are limited(no new position is allowed if the limit is reached until certain percentage of existing trades are closed) ......beside there is limit on number of contract that can be traded by one person...

 

[trump]

Dear friends,

I'm just a beginner and going through various posts in here and it's very informative.

One question came up while I was reading thru the posts.

Suppose, someone (assume Bill Gates) has got enough cash in pocket to buy away all available future contracts available in the F&O market for a particular stock (say Infy).
Is it possible that the very next day there would be no contracts available of that particular stock for rest of buyers (us)? Or new contracts would be automatically generated considering Bill sells only after 1 month?

Is the number of contracts (futures) available limited?​

The derivative contracts in the below mentioned security has crossed 95% of the market-wide position limit and are currently in the ban period. It is hereby informed that all clients/members shall trade in the derivative contracts of said security only to decrease their positions through offsetting positions. Any increase in open positions shall attract appropriate penal and disciplinary action in accordance with the Circular No. NSCC/F&O/C&S/365 dated August 26, 2004.

read here on the NSE website the details of position limits...
http://www.nseindia.com/products/content/derivatives/equities/position_limits.htm

by the way instead of buying all the futures it would be preferable to bid for the company altogether and acquire it.

 

[SavantGarde]

There are several types of Limit in place....

One that most are familiar is Market Wide Limit aka Market Wide Ban or in short Banned...which means Contract for any expiry is not available to any participants.... till a certain percentage of the existing contracts aren't squared off.

Then there is Trading Member limit...which basically means a Broker's Limit & if a Broker's Limit is reached... then the Broker & his clients will not be allowed to take any positions

Similarly there is a individual limit as well.

This particular query has been asked before several times.... and was even replied to....

SG

 

[amlearning]

Good Evening,

Thank you SavantGarde, trump and Sunny1 for your valuable inputs.
I tried to search but I think I'm little rusty with computer works hence, didn't get anything. Anyways, Thanks to you guys.

One more thing, suppose I want to know the number of open/available contracts for a particular stock future contract on two specific dates (say 21/Sept/2011 and 21/Nov/2011). How do I do that? Where can I find that information?

 

[MichealFlether214]

Sunny1 is right, bill gates (or anyone ) will not be able to do such things. I think this individual limit is what makes it an equal opportunity for all of us.

 

[rasikfareedh]

One more thing, suppose I want to know the number of open/available contracts for a particular stock future contract on two specific dates (say 21/Sept/2011 and 21/Nov/2011). How do I do that? Where can I find that information?

i think, you need to load the old history database, after that scroll to back in your platform.
because i also new to this field, not tried