Author: Sachin Gupta
PREVIOUS MWPL %
STOCKS
CURRENT MWPL %
88.38
86.38
93.92
81.87
101.04
90.26
PREVIOUS MWPL %
STOCKS
CURRENT MWPL %
78.60
80.65
85.02
85.50
89.89
88.61
83.18
83.60
86.72
89.89
92.36
92.09
81.54
85.24
80.58
92.38
78.54
85.79
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.