Author: Sachin Gupta
PREVIOUS MWPL %
STOCKS
CURRENT MWPL %
101.01
100.1
88.48
87.94
90.41
87.09
101.32
94.44
94.25
93.69
95.94
93.5
83.86
83.08
85.69
84.84
85.16
84.77
93.25
100.68
PREVIOUS MWPL %
STOCKS
CURRENT MWPL %
85.69
84.84
85.16
84.77
83.86
83.08
82.47
81.79
84.08
82.68
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.