The Circuit limits for a stock indicates the maximum and minimum possible price values of a stock on that particular day. The values given on the ‘stock reach’ screen are ‘Highest possible price’/'Lowest possible price’ for that day. ‘Circuit limits’ for a stock is necessary to regulate the manipulative or one way price rigging of the Particular stock.
Generally small caps suffer from manipulative actions due to low equity capital. The percentage of circuit limit varies based on many factors. If particular stock price increases/decreases 10% on two consecutive days then the Exchange may reduce the circuit filter to 5 %
Mohan Bhupathiraju
Mohan Bhupathiraju is a co-founder & editor at LastBull.com. Handled multiple projects in BFSI for few of the Forbes top 100 companies. He works in IT industry in the US. Presently working on start up Ideas in Finance & Technology niches.
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Hello sir,
sir i would like to know about how the circuit limit works for the stocks…
I have heard that if the stock CL is 20%……2 days continuous 20% cl….THE next day it will be 15%….2 days continuous 15% ….next day it will be 10%…..iam right?