Options

Position Limit

An exchange-imposed cap on how many contracts of a specific Futures or Options instrument an individual client (or the market) can hold, to prevent excessive risk concentration.

A position limit is a cap, set by the exchange, on how many contracts of a specific Futures or Options instrument an individual client — or the market as a whole — can hold at once. These limits exist to prevent excessive concentration of risk in any single contract and are publicly disclosed by NSE/BSE.

See how position limits can affect order placement in How to Buy a Call Option: Step-by-Step Example.