Why is intraday trading not allowed for contracts if the underlying security is under a ban period?

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• Why do F&O contracts enter a ban period?

  Futures and Options (F&O) contracts of stock enter a ban period when the stock's open interest crosses 95% of the Market Wide Position Limits (MWPL). The purpose of this ban is to control excessive speculation and prevent potential market ...

• 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 ...

• Can F&O positions be rolled over during the ban period?

  During a ban period for the traded contract, it is not permissible to roll over open F&O positions as per SEBI regulations. During this period, trading is halted, with traders not being allowed to take up new positions for the specific stock under ...

• What is Intraday and Delivery Trading?

  Intraday Trading and Delivery Trading are two distinct trading strategies for stock market participants. Here’s a detailed explanation of each: Intraday Trading Definition: Intraday trading involves buying and selling stocks on the same day. The ...

• What does it mean when a security is in BAN for Trade due to the breach of 95% of MWPL (i.e., 20% of non-promoter holding)?

  When a security is placed under a BAN for Trade due to breaching 95% of the Market Wide Position Limit (MWPL), it signifies that the trading activity in that security has surpassed the prescribed regulatory limits. Specifically, if 20% of ...