Very Important development for stocks that are traded in F&O
After this circular comes into effect from 23rd Feb, expect less no. of stocks to go into F&O Ban
From now on, all F&O traders need to keep a tab on MWPL of the f&o stocks in which they have open positions
Market Wide positional Limit
A stock goes in Ban period in F&O when its open derivatives contracts (open interest) cross 95% of the market wide position limit (total allowable contracts).
It will Also mean the seller of the option will have to pay 50-300% extra exposure margin so it will not be easy to maintain the margin as well as MTM…
Will also mean also Additional margin Will be Required If OI increses ?