[ad_1]
First time, I’m witnessing 19 shares that are in F&O Ban. What could possibly be potential cause for it. Does it imply that merchants have shifted from index choices to inventory choices?
2 Likes
Hello @Aditya_Gupta,Every time the open curiosity of a perticular inventory exceeds 95% of their market-wide place limits, then the F&O contracts for that inventory go right into a ban interval. That is performed by the regulatory authorities to regulate the manipulative exercise and volatility.
whats market huge place restrict
sanjay_lavudya:
whats market huge place restrict
Most permitted open curiosity for that inventory out there
MWPL is the utmost variety of open F&O contracts permitted for a selected underlying inventory. This restrict is about by the change. To study extra, please consult with this hyperlink
however very mainly what’s MWPL? i.e why change must impose it?there could not have been MWPL when the f&o was launched initialy. When it got here into existence and whats the elemental cause?is there related rule on MWPL limits in US exchanges? as a result of they permit quick promoting for years collectively even when the short-seller doesnt have the underlying in hand as per my understanding.
So that individuals can’t quick greater than the precise variety of the inventory obtainable out there.
It occurs within the US. In the course of the Gamestop saga, the open shorts have been at 140% of obtainable amount in market. Means the identical underlying was used to quick greater than as soon as.
[ad_2]
Source link
