Author: Sachin Gupta
PREVIOUS MWPL %
STOCKS
CURRENT MWPL %
84.37
85.01
85.81
86.41
90.53
94.22
85.27
87.90
85.45
87.59
85.96
83.94
82.30
82.47
79.83
89.94
80.38
84.60
74.75
81.96
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.