Author: Sachin Gupta
PREVIOUS MWPL %
STOCKS
CURRENT MWPL %
102.19
101.01
89.13
88.48
84.80
83.86
87.03
85.69
86.63
84.08
86.17
85.16
98.79
95.94
92.61
90.41
96.28
94.25
78.40
101.32
PREVIOUS MWPL %
STOCKS
CURRENT MWPL %
84.80
83.86
82.97
82.47
82.46
81.34
85.17
81.67
86.63
84.08
98.05
80.49
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.