Quantity Freeze Limits – What you need to know

Stock exchanges around the world introduce rules and regulations from time to time in order to protect and sustain the market activity in the long-run. One such rule is Quantity Freeze. It helps to regulate the flow of orders within a certain specified quantity and avoid flash moves in either direction. Any order size above the pre-defined limits will be automatically canceled by NSE and the limits available in the client ID will be blocked for the rest of the day to ensure that such breaches do not occur.

Logic of Quantity Freeze:

In a busy marketplace in which transactions are happening every split second, things can go haywire if the flow is disrupted by disproportionately large buy/sell orders. Whether these orders are placed by large non-institutional players, rogue traders or it happens by accident, it can affect the short-term prices of the underlying derivative contract. For instance, assume that a trader sends an order to sell/short 25,000 Nifty Bank futures by mistake instead of 250. Let’s also assume that he has the limits in his account to fulfill the margin for that trade. By mistake, he would’ve put himself at huge risk and in the process disrupted the order flow for other traders. This is referred to as a fat finger trade and we’ve seen such errors happen in the markets before. A quantity freeze ensures that such mishaps do not happen and trading activity goes on as usual. If traders want to buy or sell large quantities beyond the freeze limits, then they will have to slice it into smaller orders.

Benefits of Quantity Freeze:

• Smooth order flow.
• Better liquidity (Large orders will have to be sent in smaller quantities).
• Better execution
• Avoids accidents (Fat finger trades)
• Discourages the formation of dark pools (As institutions don’t have the incentive to hide from large HFT to some extent).

Information on Quantity freeze limits:

From time to time when there are revisions in the quantity freeze limits, NSE publishes these revisions via circulars which we display on our circulars page. This information is available to you and you can access them at any time. Here is a sample. Often, this is received on short notice and the limits can change based on the exchange’s internal checks. Below is a screenshot of the above circular for your reference.

quantity freeze on nse - Fyers

If your account is locked due to quantity freeze, we request you to get in touch with us immediately so that we can get in touch with the exchange and re-enable your account at the earliest.

Tejas Khoday

Tejas Khoday

Tejas is the Co-Founder & CEO @ www.fyers.in, the youngest team to get NSE’s broker license. FYERS was started as a mission to enhance the terrain for traders and investors in India. He previously worked at Zerodha, Futures First & has been a professional trader for several years.

Recent Posts

Leave a Reply

Showing 56 comments
  • Krishna K R
    Reply

    An informative one. I didn’t knew that there are freeze limits. A well written post sir. Thanks for the article

  • sunny
    Reply

    sir do you offer cover order and bracket orders?
    if yes; then how much leverage you provide on it?
    can we trade in mcx from your platform?

  • sunny
    Reply

    any expected date or month?

  • Dr.Ojha
    Reply

    Very informative.I really had no knowledge about this.Thank you.

  • Nagaraj
    Reply

    Is the quantity freeze different from one broker to the other?

  • Aarav
    Reply

    Very useful information by you Tejas. I am observing the way you are going about things and I am impressed with Fyers progress so far.

  • Sadiq
    Reply

    Why should they freeze it? I guess NSE is putting too many restrictions on traders.

  • Ujwal Udayan
    Reply

    this is applicable only to very big traders who hit these limits. but nice post. .

  • parag
    Reply

    Good info Tejas

  • Jaggi
    Reply

    How often does it change and where to get to know this?

  • AMIT KUMAR PANDEY
    Reply

    tejas sir can you pls explain how we can interpret candlestick charts of Currency Pairs?
    it look very different . there are lots gaps up/down shown, very slow movement of prices(very small candlestick), personally i always found it downtrend.
    when i see stock chart and currency chart side-by-side they look very different.
    i want to trade in currency pairs but charts of currency looks weird .
    pls guide me sir.

  • sunny
    Reply

    Sir, i m a bit confuse about your Orders system, kindly clear it-
    suppose i buy a stock @ 100 and want to place a stoploss of RS.5 along with trailing of RS.2 ;
    Now the problem is your system treat both order as different.
    Now if i dont place a stoploss order How would your Trailing order know from which point to trail?
    If i directly place a trailing stoploss of RS. 5 , it would trail like 95-100-105….but i want my initial stoploss @ 95 which trails from 95-97-99-101….etc
    Hope You will understand my problem.

  • Big_Trade
    Reply

    Hi I am tamilian settled in Singapore. I have an account with Karvy and I had same doubt but till today they didn’t give me this knowledge about quantity freeze.. Do you have NRI segment or is it better to open normal account?

  • Hardik
    Reply

    Thanks for the clarity Tejas

  • AMIT KUMAR PANDEY
    Reply

    when you are launching your new web based platform?

  • AMIT KUMAR PANDEY
    Reply

    pls launch BO/CO feature in fyers one

  • Saurabh
    Reply

    Is there a particular duration for which quantity is frozen?

  • Aayush
    Reply

    I did not know that stock exchanges have certain regulations regarding quantity traded… Thanks for the info.

  • Anmol
    Reply

    Hi I am from Siliguri, West Bengal. I noticed ur blogs are really good but you don’t have branch here in WB that’s why i didn’t yet open account with you. Please let me know ur details.. i will try with 20-30 thousand and see ur platform.

  • Suraj
    Reply

    This helped me learn something new. Thanks for the information.

  • AMIT KUMAR PANDEY
    Reply

    pls launch BO/CO soon sir. this is the only reason stoping me to choose fyers as my primary broker.

  • AMIT KUMAR PANDEY
    Reply

    sir when you are launching your new web platform?

  • AMIT KUMAR PANDEY
    Reply

    eagerly waiting for your new web platform. pls launch it soon

  • AMIT KUMAR PANDEY
    Reply

    sir pls don’t change your Brokerage plan OR else put a percentage (0.01% as earlier) to Maxm of Rs.20/-.
    Bcz in your previous brokerage plan there is 2 part ; one 0.01% and maxm Rs.100
    Big traders who are normally generating brokerage of rs.100 per order are not affected But small traders and new traders whose brokerage don’t even go upto Rs.20/- are greatly affected.
    Big traders generate profit in thousands and lakhs ; paying rs.40(20+20) per order will not affect them But small traders who earn profit in few hundreds rupees only will get greatly affected.
    Hope you will understand my suggestion and do the needful.

  • AMIT KUMAR PANDEY
    Reply

    sir till when we have to wait for bracket and cover order?
    i m requesting this feature from many months.

  • AMIT KUMAR PANDEY
    Reply

    sir approximately how much more time is required ?
    just bcz of these order types i don’t feel comfortable while trading with fyers.
    Pls try to launch it as early as possible.

  • Trade_Genie
    Reply

    Hope your platform can handle trades better.. I am sick of Zerodha Pi failing again and again. I saw mail about your new web launch.. when is it coming out?

  • AMIT KUMAR PANDEY
    Reply

    tejas sir what next we can expect from Fyers after new web platform?

  • shrikanth.N
    Reply

    Dear Sir
    can you please tell us tentative time of euro/usd trade will start?
    Regards
    Shrikanth.N

  • AMIT KUMAR PANDEY
    Reply

    sir is there any way to draw pivot point in your web platform?

  • B M Rao
    Reply

    what is the margin required for btst in cash segment.

  • Sangamesh
    Reply

    What is the quantity freeze limits for PC jewellers futures?

  • Tejas Khoday
    Reply

    Glad you know now. Such things are not really brought to light as they should be. If you want us to write a specific post on which information is not available elsewhere, do let us know.

  • Tejas Khoday
    Reply

    Hi Sunny, not yet but its in our roadmap for the year. MCX too 🙂

  • Tejas Khoday
    Reply

    Currently don’t want to put a finger on a deadline Sunny. We’re developing something nice right now. Post that, we’ll take these order types up as a priority. It is in our roadmap.

  • Tejas Khoday
    Reply

    🙂

  • Tejas Khoday
    Reply

    No! Same limits are imposed to all brokers and market participants.

  • Tejas Khoday
    Reply

    Thx.

  • Tejas Khoday
    Reply

    Thanks Aarav. Just getting started…

  • Tejas Khoday
    Reply

    Thx.

  • Tejas Khoday
    Reply

    It changes once in a while and is notified in advance by the exchange via circulars. To track it, you can follow our circulars page: https://www.fyers.in/circulars/

  • Tejas Khoday
    Reply

    Yes we understand that your requirement is unique but currently that’s the way to do it. We’ll work on improving the order type and put it in our roadmap Sunny!

  • Tejas Khoday
    Reply

    🙂

  • Tejas Khoday
    Reply

    Gunning for the 1st week of June Amit 🙂

  • Tejas Khoday
    Reply

    It is frozen for the day. If you want to unfreeze, you’ll need to call us so we can contact the exchange and do the needful.

  • Tejas Khoday
    Reply

    Hello Anmol, Thx! Well we’re an online broker so opening branches across the country doesn’t make sense for our business model. To give you some facts, our clients are evely spread across India and we have many of them from Siliguri too. The service you get is the same whether you are located beside our office in Bangalore or any other part of India. Think about it, Paytm doesn’t have branches in every city of India either. 🙂

  • Tejas Khoday
    Reply

    Amit, will do but currently, we’re working on the web trader. We have taken your points into consideration 🙂

  • Tejas Khoday
    Reply

    Certainly will. 2 steps at a time 🙂

  • Tejas Khoday
    Reply

    Hi Amit, we’re hopeful of finally launching at the end of this month.

  • Tejas Khoday
    Reply

    Dear Amit, we just reduced our brokerage by 80% to 20/- per executed order. So far, we have received very positive responses from many of our clients. Thing is, that we’re trying to make it simple for everyone and also be compensated for taking a haircut from our previous brokerage charges. Request you to see the quality of services we provide in comparison to our peers. In any case, if you don’t want the change, you can opt to continue under the old charges.

  • Tejas Khoday
    Reply

    These order types will take time Amit. We’re working on other things.. In a few days we’re launching Fyers Web.

  • Tejas Khoday
    Reply

    Amit, As you know we are an in-house platform and unlike other brokers who get these products through their software vendors and are in a pre-approved stage, they can launch it sooner. There are lengthy documentation, procedures and stuff needed to roll this out. So we’re focusing on other developments which matter to traders more. Request you to wait till the month end. We’ll give you a good surprise with Fyers Web.

    BO/CO orders is just a leveraged execution algo order type. Yes, I do understand that many traders want this nowadays, but there are several things which they want which other brokers don’t provide as of now. We’ll pioneer in these areas.

  • Tejas Khoday
    Reply

    Trade_Genie, Our platforms are built in-house with a special focus on seamless execution. Although I wouldn’t like to name a competitor to compare our trading platforms, I would suggest you try us out. Fyers Web launched today. Here’s the link: https://trade.fyers.in

  • Tejas Khoday
    Reply

    Hello Amit, we introduced 4 new updates in the last 4 weeks on Fyers Web. We’ve sent you an email yesterday. Hope you have had a look at it.

  • Tejas Khoday
    Reply

    If I knew, I would tell. The thing is nobody knows because NSE has not yet announced any dates yet. I will alert everyone as soon as I have information.

  • Tejas Khoday
    Reply

    For BTST trades, you will require 100% margin.

Leave a Comment