Author: Sachin Gupta
PREVIOUS MWPL %
STOCKS
CURRENT MWPL %
100.10
99.28
87.94
86.43
87.09
83.93
94.44
92.76
93.69
92.93
93.50
90.31
84.84
83.43
84.77
83.25
100.68
93.74
78.08
101.54
PREVIOUS MWPL %
STOCKS
CURRENT MWPL %
84.84
83.93
84.77
83.25
87.09
81.78
82.47
81.79
82.68
82.00
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.