Author: Sachin Gupta
PREVIOUS MWPL %
STOCKS
CURRENT MWPL %
96.72
94.74
87.33
84.62
88.27
85.81
90.28
87.20
87.59
86.14
90.43
87.41
88.03
83.59
93.27
90.41
85.48
81.69
PREVIOUS MWPL %
STOCKS
CURRENT MWPL %
92.37
87.60
82.70
84.73
88.97
93.89
87.70
90.04
81.11
80.15
87.71
92.46
87.64
86.52
84.85
82.04
78.65
81.63
79.50
80.31
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.