Author: Sachin Gupta
PREVIOUS MWPL %
STOCKS
CURRENT MWPL %
92.10
89.76
86.95
85.60
78.05
112.09
86.78
84.40
89.04
86.92
107.69
97.67
92.83
89.61
87.86
84.27
91.79
89.24
83.67
82.07
PREVIOUS MWPL %
STOCKS
CURRENT MWPL %
88.39
83.00
86.04
82.04
86.78
84.40
87.86
84.27
83.67
82.07
The goal of the stock ban in F&O is to curb excessive speculation. When a stock's total open interest exceeds 95% of the market-wide position limit (MWPL), the stock exchange imposes an F&O ban. Traders are not allowed to open new positions in the stock that is subject to the F&O Ban during this time. But by squaring off positions, they can decrease their stake in that stock.
There is a chance that a stock may soon be added to the ban list if its MWPL is greater than 80%. A stock has a chance of leaving the ban list in the near future if its MWPL begins to fall below 95% while it is on the list.