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What is wide possition limit in F&O ?

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Old 31st July 2008, 10:59 AM
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Default What is wide possition limit in F&O ?

hi there
I just receved this following massage while trading from my brokarage house i.e indiabulls.
"Dear costomer the exchange has informed us that the open interest in the underlying security PARSVNATH has reached 90% of the specified market wide possition limit in the F&O segment. you shall there not be allowed to take any freash posstion in contracts of underlying security PAESVNATH"

well i want to know,

1} what exactly is this wide possition limit ?

2} how it is calculated ?

3] is it normal in F&O segment that or it is veary rare ?

please excuse my epelling mistake.

Ali
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Old 31st July 2008, 03:47 PM
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Default Re: What is wide possition limit in F&O ?

Quote:
Originally Posted by mdrali2001@*****.com View Post
hi there
I just receved this following massage while trading from my brokarage house i.e indiabulls.
"Dear costomer the exchange has informed us that the open interest in the underlying security PARSVNATH has reached 90% of the specified market wide possition limit in the F&O segment. you shall there not be allowed to take any freash posstion in contracts of underlying security PAESVNATH"

well i want to know,

1} what exactly is this wide possition limit ?

2} how it is calculated ?

3] is it normal in F&O segment that or it is veary rare ?

please excuse my epelling mistake.

Ali
It's the Market Wide Position Limit (MWPL) and not Wide position Limit. Market Wide Position Limit is the maximum limit of Open Interest for securities in F&O segment . Open Interest in a security can not go beyond this level.
This limit is set up by the exchange and differs from security to security.

As a survillence process, brokers won't allow a client to take fresh position in F&O securities if Open Interest for the particular security exceeds 90% or 95% of MWPL.
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Old 1st August 2008, 12:25 PM
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Default Re: What is wide possition limit in F&O ?

HI
thanks moneygurkul.
for correcting mee. i want to know further that how is this MWPL is calculated its by the number of contracts or by the valuve of contracts ?

and how much a trader can trade in F&O i meen is there a limit for it in the sence amember cannot trade more then a surten number of contracts.or value

Please explain
Ali
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