Market Wide Position Limit NSE (MWPL)

More than 200 derivative NSE stocks are shown in the NSE Ban List section. It also shows if a stock is on the “Ban List” or if it has a chance of being added soon. Ban List and Market Wide Position Limit in NSE or MWPL are two different things. Before we move on, let’s make sure we understand what they are. In this page we also have provided live list of stocks under ban and possible ban.

What is Market Wide Position Limit in NSE or MWPL?

The Market Wide Position Limit NSE, or MWPL, is a limit that says how many unresolved option contracts can be for a given derivative stock at the same time. 95 percent of indian derivative stocks have a MWPL of 95 percent right now.

What is the NSE “Ban List”?

We already has a detailed blog post on this topic. If a stock’s MWPL is above 95%, it is on the “Ban List”. The Ban List shows the Futures and Options (FnO) stocks whose combined open interest in all FnO contracts for a given period exceeds 95 percent of the total position limit for that stock.

What are the possible ways in and out of the game of MWPL?

There is already a rule that the MWPL of a security must be above 95% in order for it to be on the FnO ban list. If a stock has a MWPL above 80%, there is a good chance that it will be banned soon. So, what we do is remove these stocks and put them in the table for possible newcomers. It gets a lot easier to find them now.

A possible exit is a list of securities that are already in the ban list but may be able to get out. You also need to keep an eye on these stocks.

Stocks Exiting Ban as per Market Wide Position Limit

The chances of a stock getting out of the ban list if its MWPL starts to fall below 95% are very good, soon. Traders can again trade those stocks normally.

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