Author: Sachin Gupta
PREVIOUS MWPL %
STOCKS
CURRENT MWPL %
99.60
97.25
89.03
86.45
77.78
121.09
88.24
98.72
94.90
87.74
93.56
89.41
97.21
93.52
119.14
108.07
91.27
88.76
89.44
95.03
PREVIOUS MWPL %
STOCKS
CURRENT MWPL %
81.55
80.26
83.02
81.22
95.77
80.95
84.00
80.34
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.