Market Wide Position Limits

#1
I understand that when the market wide position is about 75% we will not be able to trade in F&O segment.

But I would like to know when the position is around 95% someone needs to sell his position to bring it back to 75% and some one needs to buy it.

With the effect of ban in place, how these transaction is taking place? Can you please throw some light on this.

Thanks,

Raj
 
#3
Ban in the sense fresh/ additional positions cannot be initiated.

Investors can sell their exisiting positions in the F&O anytime before the expiry (even if marketwide limit ban on fresh positions is imposed).

Regards,

Capriura
 

Alchemist

Administrator
Staff member
#4
Ban in the sense fresh/ additional positions cannot be initiated.

Investors can sell their existing positions in the F&O anytime before the expiry (even if marketwide limit ban on fresh positions is imposed).

Regards,

Capriura
The limits mentioned in the first posts are incorrect and thus I asked for a clarification.

New positions are allowed till 95% market wide position limit is reached.

Once 95% limit is crossed, new positions are not allowed and longs/shorts can only close their positions.

Normal trading starts only after the aggregate open interest across exchanges comes down to 80% or below of the market wide position limit.
 
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