Author: Sachin Gupta
PREVIOUS MWPL %
STOCKS
CURRENT MWPL %
105.21
103.56
91.63
89.82
91.90
84.63
91.77
87.67
89.73
86.83
91.24
89.27
95.96
91.37
91.17
88.45
88.25
107.54
88.92
97.00
102.74
98.08
PREVIOUS MWPL %
STOCKS
CURRENT MWPL %
91.32
94.26
87.35
88.52
88.68
91.19
87.90
90.16
86.43
89.33
83.79
85.56
86.06
87.37
81.47
83.87
77.90
90.06
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.