If the market hits a circuit breaker, what happens to my existing orders & positions?
When the market hits a circuit breaker, trading can pause temporarily or be halted entirely to manage volatility. It’s important to understand how this affects your open orders and positions on FYERS, especially during high-movement periods.
What is a circuit breaker?
A circuit breaker is a regulatory mechanism that temporarily halts or limits trading when an index or stock price moves beyond a defined percentage range. This helps prevent panic selling or irrational price surges.
There are two types:
- Market-wide circuit breakers: Triggered when the NIFTY 50 or Sensex moves by 10%, 15%, or 20% in either direction. This leads to a halt in all equity and derivative trading across exchanges.
- Stock-level circuit filters: Apply to individual stocks or commodities that breach their daily price movement limit.
What happens to your orders and positions?
- Pending Orders: All open or unexecuted orders are automatically cancelled by the exchange when a circuit filter is triggered.
- Existing Positions: These remain open, provided you have sufficient margin to carry them forward.
- Margin Shortfall: If your account lacks enough margin during or after the halt, FYERS’ RMS (Risk Management System) may square off your positions to manage risk.
Commodities
Price circuit limits in commodities vary by product. For example, in crude oil:
- The base price limit is 4%.
- If breached, it’s relaxed to 6% immediately.
- Beyond 6%, there is a 15-minute cooling-off period before the limit extends to 9%.
- If international markets move more than 9%, further relaxations in 3% steps may be permitted and reported to the regulator.
What If...
| Scenario | Explanation |
|---|
| I placed an order just before a circuit hit | If it wasn’t executed, it will be cancelled once the circuit filter activates. |
| I have a position and the market is halted | Your position remains open. If you have enough margin, it will be carried forward. |
| I don’t have enough margin | FYERS may square off your position to limit exposure. |
| I trade in commodities | Circuit limits vary. Some products may allow progressive extensions with cooling-off periods. |
For detailed market-wide circuit rules, visit the
NSE Circuit Breakers page. Keep track of margin availability during high volatility sessions.
Last updated: 28 Jun 2025
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