Rel capital is banned for the day in fno. Why’s it still trading?
Tag the question, please!
Infact all the stocks under ban are trading
Existing open positions can continue to trade / square off. Banned F&O stocks means no fresh positions can be created.
What’s the deciding factor in a derivative being blocked for the day?
Ban period for F&O contracts:
If the total number of open F&O contracts in a stock(open interest) exceeds 95% of the MWPL, then the contracts go into a ban period. No new positions should be added to the exceeded open interest, the broker will be penalized by the exchange if new positions are added in his account. Clients/ Brokers should trade only to decrease their positions through offsetting positions till the normal trading in the scrip is resumed.
The normal trading in the scrip is resumed only after the open interest comes down to 80% or below of the market wide position limit.
@Srinivas see the image, from Bloomberg quint. It says banned fno can be traded intraday. pls explain
Assume you buy Jain irrigation Fut in MIS and the system allows this. Now if you convert this MIS position to NRML, the system will allow this as well. And the OI will increase EOD and exchange will penalize the broker. So even MIS positions not allowed for futures in ban period.
One more question, bro.The stop and target that are placed are 0.5 lesser than what I had actually set in today’s trade
Hmmm, tricky… Support will assist you, bro. I’m unsure why the 0.05 drop happened.