Author: Sachin Gupta
PREVIOUS MWPL %
STOCKS
CURRENT MWPL %
102.97
101.40
94.16
91.35
89.22
85.69
91.35
89.27
79.13
101.94
99.21
97.16
78.44
119.70
165.19
139.16
99.22
94.65
98.70
93.22
PREVIOUS MWPL %
STOCKS
CURRENT MWPL %
83.93
82.71
83.25
81.80
82.99
82.30
86.20
84.20
85.33
83.59
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.