Author: Sachin Gupta
PREVIOUS MWPL %
STOCKS
CURRENT MWPL %
79.76
107.18
91.41
98.89
94.93
95.47
97.67
93.36
89.76
87.23
89.24
86.30
86.92
83.81
85.60
83.69
104.61
101.04
89.61
87.57
84.27
81.47
82.07
80.50
80.49
80.19
PREVIOUS MWPL %
STOCKS
CURRENT MWPL %
86.92
83.81
85.60
83.69
84.27
81.47
80.49
80.19
82.07
80.50
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.