Author: Sachin Gupta
PREVIOUS MWPL %
STOCKS
CURRENT MWPL %
97.25
95.53
79.34
96.41
121.09
111.51
98.72
90.43
94.90
87.74
89.41
85.64
93.52
86.60
108.07
98.96
88.76
86.51
95.03
87.08
87.08
99.68
PREVIOUS MWPL %
STOCKS
CURRENT MWPL %
86.45
84.45
86.19
81.75
87.74
81.16
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.