Author: Sachin Gupta
PREVIOUS MWPL %
STOCKS
CURRENT MWPL %
96.93
96.28
89.31
86.90
92.17
86.68
88.43
86.73
79.80
94.85
92.09
101.27
93.34
109.54
94.70
98.75
91.60
107.49
92.27
96.73
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.