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Market-wide position limit

MWPL is the SEBI and exchange cap on aggregate futures and options positions in a stock or index across the market.

Exchanges publish market-wide position limits for F&O stocks and indices under the SEBI derivatives framework.

When aggregate open interest approaches or breaches the exchange-notified MWPL, the scrip can enter a ban period with position restrictions.

During a ban, fresh positions may be disallowed while existing positions can often only be squared off, subject to prevailing circulars.

Exact MWPL percentages and ban triggers are exchange-notified and can change; this entry describes the mechanism, not a fixed number.

Part of the Market Pulse Term of the Day series — factual market vocabulary, not investment advice.