What is circuit limit in stock exchange ?

I want to know about circuit & limit of Bombay stock exchange ? How to play & know the implication & complition of the circuit ?

Public Comments

1. Circuit limit is the max % a stock can go up or down in a day. If it goes to upper circuit say 10%, the price is frozen at that price - positive and if it is down 10% -negative.

2. Circuit Filter or Circuit Breaker as many know it means the maximum or minimum price the stock/index can hit during the day. e.g. a 20% circuit means a 100-rs stock can go upto 120 or fall upto 80 in a given trading day and not more than that. Some stocks that are included in F&O and are parts of BSE/NSE indices don't have any circuit limits and can rise/fall in any percentage as per demand/supply forces. Other stocks do have circuit limits imposed, these can be 5%,10%,20%. In India we have circuits for indices also like Nifty and Sensex.http://akprabhakar.blogspot.com

3. That's the highest percentage a stock can go up or down in one day.