Securing Hannav Ledger...
Securing Hannav Ledger...
Glossary
A price circuit limit is the maximum percentage a stock can move up (upper circuit) or down (lower circuit) in a trading day before trading in it is halted.
The daily price band a stock cannot cross, up or down, before trading stops for the day.
Set by exchanges based on the stock’s volatility and liquidity, ranging from 2% to 20%; a stock stuck at upper/lower circuit may have no buyers or sellers to trade with.
A small-cap stock with a 5% circuit limit that rallies 5% in a day gets locked at the upper circuit with no further trading.
The daily price band a stock cannot cross, up or down, before trading stops for the day.
Price Circuit Limit (Upper/Lower Circuit) helps you evaluate products, compare options, and make informed decisions aligned with goals, tax rules, and risk tolerance in the Indian financial system.