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.<\/p>\n\n\n\n
Purpose: These limits are in place to ensure stability in the market and safeguard investors from rapid and unpredictable price movements.<\/p>\n\n\n\n
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.<\/p>\n\n\n\n
Daily Trading Range: The price band sets the permissible range within which a stock can be traded on a given day.<\/p>\n\n\n\n
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.<\/p>\n\n\n\n
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.<\/p>\n\n\n\n
Stay Informed: To keep track of circuit limits and ensure informed trading, regularly check the market depth on CubePlus.<\/p>\n\n\n\n
Note: Understanding circuit limits is crucial for making well-informed investment decisions and navigating the market effectively.<\/p>\n\n\n\n
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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. […]<\/p>","protected":false},"author":1,"featured_media":0,"parent":10846,"menu_order":7,"comment_status":"closed","ping_status":"closed","template":"","doc_tag":[],"acf":[],"_links":{"self":[{"href":"https:\/\/faq.tradejini.com\/wp-json\/wp\/v2\/docs\/10866"}],"collection":[{"href":"https:\/\/faq.tradejini.com\/wp-json\/wp\/v2\/docs"}],"about":[{"href":"https:\/\/faq.tradejini.com\/wp-json\/wp\/v2\/types\/docs"}],"author":[{"embeddable":true,"href":"https:\/\/faq.tradejini.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/faq.tradejini.com\/wp-json\/wp\/v2\/comments?post=10866"}],"version-history":[{"count":0,"href":"https:\/\/faq.tradejini.com\/wp-json\/wp\/v2\/docs\/10866\/revisions"}],"up":[{"embeddable":true,"href":"https:\/\/faq.tradejini.com\/wp-json\/wp\/v2\/docs\/10846"}],"wp:attachment":[{"href":"https:\/\/faq.tradejini.com\/wp-json\/wp\/v2\/media?parent=10866"}],"wp:term":[{"taxonomy":"doc_tag","embeddable":true,"href":"https:\/\/faq.tradejini.com\/wp-json\/wp\/v2\/doc_tag?post=10866"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}