Author: Sachin Gupta
PREVIOUS MWPL %
STOCKS
CURRENT MWPL %
95.53
92.18
96.41
91.34
111.51
104.37
90.43
85.94
85.64
82.32
86.60
83.86
98.96
88.83
86.51
84.06
99.68
87.82
88.58
95.94
PREVIOUS MWPL %
STOCKS
CURRENT MWPL %
84.45
80.80
81.75
80.25
85.64
82.32
86.60
83.86
86.51
84.06
87.08
81.72
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.