How do I trade in the F&O securities which are currently categorized in the ban period?

How do I trade in the F&O securities which are currently categorized in the ban period?

The securities that have crossed 95% of the market-wide position limit (MWPL) are currently categorized in the ban period. Trading in futures and options (F&O) securities during the ban period can be challenging. This is due to restrictions from the stock exchanges. During a ban period, you cannot initiate new positions in F&O securities that are under the ban. But if you already hold these securities, you can still trade to close those positions.

Here's what you can do during the ban period:

1.      Square off existing positions: If you already have open positions in the banned F&O securities, you can trade to close them. This involves taking an opposite position to the one you currently hold. For example, if you have a long futures position, you can sell the same quantity of futures contracts to close it.

2.      Wait for the ban to be lifted: The ban is usually temporary. Securities are banned from F&O trading due to too much speculation or volatility. Watch for announcements from the stock exchanges. Also, watch for them from regulatory authorities. They will announce the lifting of the ban. Once the ban is lifted, you can resume trading in these securities as usual.

3.      Explore other trading opportunities: Some securities may be banned. But there are still many other opportunities in the market. Consider diversifying your trading. Do this by exploring other stocks or derivatives not subject to restrictions.

View the list of securities that are currently categorized under the ban period by the Exchange.

(URL: https://www.nseindia.com/products-services/equity-derivatives-risk-management-sec-ban )

5Paisa recommends that all customers avoid trading in securities that are currently categorized as being in the ban period. You will trade in such securities at your sole discretion. You understand and agree to the consequences (if any). We would request you to kindly maintain caution while trading in such securities.


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