Understanding Buy and Sell Orders During Upper and Lower Circuit

What happens to buy and sell orders when a stock hits the upper or lower circuit?

Circuit limits act as speed breakers in stock trading, preventing extreme price volatility by capping how much a stock can move in a single day. When a stock hits either the upper or lower circuit, trading behavior changes dramatically.

Upper Circuit Scenario

When a stock hits the upper circuit, it has reached the maximum allowed price increase for the day.

  • Only buyers remain: There are bid orders, but no sellers.
  • You can sell: If you hold the stock, you can sell at the upper circuit price.
  • You cannot buy: There are no sellers, so buy orders won’t get executed.

Example:
XYZ stock hits its upper circuit at ₹120. You can place a sell order at ₹120, but if you're trying to buy, your order will remain pending due to no sellers.

Lower Circuit Scenario

When a stock hits the lower circuit, it has dropped to the maximum allowed decline for the day.

  • Only sellers remain: There are ask orders, but no buyers.
  • You can’t sell: Even if you place a sell order, it won't be executed.
  • You can buy: If you're quick and demand returns, your buy order may be filled.

Example:
ABC stock hits the lower circuit at ₹80. Sellers place ask orders at ₹80, but without any buyers, these orders remain unexecuted.

Always check the market depth before placing orders—especially in volatile or low-volume stocks. It shows you current bid-ask availability and helps prevent blocked trades.

What if...

ScenarioOutcome
Stock hits upper circuitYou can sell, but can’t buy due to no sellers
Stock hits lower circuitYou can place buy orders, but can’t sell as no buyers
You place an order during circuit lockOrder remains pending unless price range opens up
Market stabilizesNormal trading resumes once bid/ask balance returns

Last updated: 25 Jun 2025