Freak trade in Nifty options? Contracts with strike price 14,500 allowed

The NSE derivative section witnessed a fat-finger trade on Thursday as a big amount of Nifty 50 choices contracts with strike price 14,500 (June 2, 2022 expiry) received executed at Rs 0.15 per unit.

A fats finger trade is the one which is triggered attributable to a human error or press of a flawed key when utilizing a pc to enter knowledge.

Often such trades outcome in large losses for one social gathering and windfall good points for the opposite. In this occasion, market gamers mentioned the dealer who offered the Nifty contracts at Rs 0.15 might have incurred losses of Rs 200 crore.

The Nifty 50 index on Thursday closed at 16,628. As a outcome, the Nifty 14,500 strike choice contract was in-the-money by over Rs 2,100. The contract was final traded at Rs 2,130.5, up 5 per cent over earlier day’s shut. It hit a excessive of Rs 2,139.85 and a low of Rs 0.15, alternate knowledge confirmed.

Market gamers mentioned the 1.25 million models received traded at Rs 0.15. They mentioned this could possibly be attributable to punching error the place the dealer offered 14,500 name choices as a substitute of 16,500 name choices.

It stays to be seen how the alternate system or its circuit filters allowed such a trade to get executed and whether or not NSE would annul the trades. Sources mentioned the alternate was in the method of ascertaining the events concerned in the trade.

NSE did not reply to a question instantly.

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