How Do the New Delta-Based F&O Ban Rules for Single-Stock Derivatives Affect My Trading on FYERS?
When a stock goes into the F&O ban, the Exchange limits trading based on a delta-based method called Future-Equivalent Open Interest (FutEq OI). In simple words, it checks your total position risk using delta. During the ban, you can only place orders that reduce your overall risk in that stock. You cannot build new positions.
Important: If you try to exit only one leg of a hedge and that increases your net delta, the platform will block it. To close both legs in a risk-reducing way, please contact us. What changed
- Old way: Limits were tracked with simple lot counts of open interest.
- New way: Limits are tracked with delta-adjusted open interest, called FutEq OI. Your futures and options are combined into one risk number based on delta. The new method is live from October 2025 as per SEBI and Exchange guidelines.
FYERS handling and cut-offs during ban
- Fresh orders are not allowed. This rule is unchanged.
- Up to 2:00 PM: You are allowed to place close-out orders even if the action may create a delta breach at that moment. This helps you exit risk in time.
- After 2:00 PM: If there is a delta breach on your open positions, the RMS team may take action to avoid penalties. This can include reducing or closing positions as needed.
What you can and cannot do during ban
- Allowed: Any trade that reduces your total delta in that stock. Example: reduce a long future, or add a hedge that brings net delta down.
- Not allowed: Any trade that adds to your net delta, or flips you from net short to net long or the other way round.
- Rollover: Not allowed if it increases your net delta.
How the delta check works
- Day 1 of ban: The Exchange notes your base position in that stock at day end.
- Each next day: Your end-of-day position is compared with the base using the 2:00 PM option deltas from the Clearing Corporation. This separates market-driven changes from trading actions.
- No issue if your end-of-day FutEq OI is the same or lower than your base and the sign does not change.
- Violation if your end-of-day FutEq OI is higher than the base, or if your side flips from net long to net short or the other way round.
A stock enters ban if market-wide FutEq OI crosses 95% of the Market-Wide Position Limit. It exits ban when it falls to 80% or lower. The Exchange recalculates MWPL every quarter using free-float and delivery data.
Penalties during ban
- If a trade makes your net delta higher than your base, a penalty of 1% of the violation value applies, with a minimum ₹5,000 and a maximum ₹1,00,000 per stock per day, plus GST.
- The penalty can repeat each day until you bring your net delta back to the base level or lower, or the stock exits ban.
Tips
- Before you place an order, ask yourself if it will lower your total delta in that stock. If not, it will likely be blocked during ban.
- To exit a hedge, use a combined order that clearly lowers risk. If you are not sure, contact us and we will help place a compliant close-out.
- Try to finish risk-reducing actions before 2:00 PM to avoid last-minute issues.
Note: If your delta goes up only because the market moved and you did not trade, this is not a violation. Violations come from trades that raise your delta compared to your base.
Examples
- Hedge reduces risk: You are long 1 future. You buy an ATM put that lowers your net delta. Allowed.
- Hedge exit adds risk: You were net +0.5 using a long future and a long put. You exit the put and become net +1. Blocked during ban.
- Only market move: You do nothing, but your call delta rises due to price. No violation.
What if...
| Scenario | What to do |
|---|
| My exit for one leg of a hedge was blocked | It likely raised net delta. Please contact us. We will help you close both legs in a way that reduces risk. |
| I want to roll my position | Rollover is not allowed if it increases net delta. Only risk-reducing actions are allowed during the ban. |
| How do I avoid penalties | Keep your end-of-day net delta the same as or lower than your Day-1 base. Do not flip sides. |
| I need help closing both legs today | Please contact us. We will assist with close-out orders that the Exchange allows. |
| What happens after 2:00 PM | If there is a delta breach, the RMS team may take action to avoid penalties. Try to finish any exits before 2:00 PM. |
Last updated: 15 Dec 2025
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