| What are Circuit Limits or Price Bands? |
| Definition: Circuit limits, also known as price bands, act as protective measures implemented by the exchange to prevent extreme fluctuations in stock prices within a short timeframe. |
| Purpose: These limits are in place to ensure stability in the market and safeguard investors from rapid and unpredictable price movements. |
| Determining Factors: The range of circuit limits, spanning from 2% to 20%, is determined based on factors such as liquidity, trading volume, and the category of the stocks. |
| Daily Trading Range: The price band sets the permissible range within which a stock can be traded on a given day. |
| Locating Circuit Limits: You can find the upper and lower circuit limits for a specific instrument in the market depth section on CubePlus, our trading platform. |
| Order Handling: Any orders placed outside the established price band will be rejected. If the price of a stock reaches the upper or lower limit, pending orders will be held until the circuit limits are relaxed. |
| Stay Informed: To keep track of circuit limits and ensure informed trading, regularly check the market depth on CubePlus. |
| Note: Understanding circuit limits is crucial for making well-informed investment decisions and navigating the market effectively. |
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