Position Limit on WebNotes

Client-wise position limit exceeded in currency derivatives

Sun, 21 Jun 2026 00:00:00 +0000

The “client-wise position limit exceeded” error in currency derivatives fires when an order would push your gross open position in a currency pair past the per-client limit the exchange sets on a PAN basis. For USD-INR the cap is the higher of USD 10 million or 6 per cent of the total open interest in USD-INR contracts, measured across every broker where you trade, not per account. The limit is a SEBI and exchange risk control on concentration in the currency segment , enforced by NSE and BSE clearing, not a Zerodha house rule.

F&O ban period restrictions

Sun, 21 Jun 2026 00:00:00 +0000

A stock enters the F&O ban period when the market-wide open interest in its derivatives crosses 95% of the market-wide position limit (MWPL) set by the National Stock Exchange and BSE . During the ban, the exchange permits only one kind of trade in that stock: a trade that reduces or maintains your net future-equivalent open interest. Open a fresh position, or add to one, and you breach the rule and pay a daily penalty. This article sets out exactly what is allowed, what is barred, the penalty arithmetic, and how Zerodha enforces the restriction on Kite .

Why scrips enter the F&O ban

Sun, 21 Jun 2026 00:00:00 +0000

A stock enters the F&O ban when the combined market-wide open interest in its futures and options crosses 95% of its market-wide position limit (MWPL), the cap on total open interest that the National Stock Exchange and BSE set for each derivative stock under SEBI’s position-limit framework. The stock leaves the ban once that open interest falls back below 80% of the MWPL. This article explains how the MWPL is calculated, why the 95% and 80% thresholds are set where they are, how the daily ban list is built and published, and what changed when the exchanges moved to a delta-based open-interest measure.