Circuit limits act like speed breakers to curb extreme price moves. When a stock hits its daily upper or lower circuit, order matching can change sharply. Market-wide circuit breakers can also pause trading across the exchange and impact your open orders.
Stock level circuits
Upper circuit (price at the day’s max limit)
- Order book shape: Only buyers remain; bids exist, but no offers.
- If you hold the stock: You can sell at the upper circuit price.
- If you want to buy: You cannot buy because there are no sellers to match.
- Example: XYZ hits ₹120. You can place a sell at ₹120; buy orders wait with no sellers.
Lower circuit (price at the day’s min limit)
- Order book shape: Only sellers remain; offers exist, but no bids.
- If you want to sell: You cannot sell because no buyers are available.
- If you want to buy: You may buy if buy demand returns and matches the offers.
- Example: ABC hits ₹80. Sells stack at ₹80, but without buyers, orders do not execute.
Market-wide circuit breakers
- What they are: Index-based halts when NIFTY 50 or Sensex moves by 10%, 15%, or 20% in either direction.
- Pending orders: If a market-wide circuit triggers, open or unexecuted orders are cancelled by the exchange.
- Existing positions: Remain open if you have sufficient margin.
- Margin shortfall: FYERS RMS may square off positions if margins are inadequate during or after the halt.
Commodities example
Commodity circuit bands are product-specific. For crude oil, a common pattern is a 4% base band, then 6%, a 15-minute cooling off, then 9%, with possible further 3% step relaxations if required by international moves.
How to handle orders around circuits?
- Verify depth and spreads before sending orders near the band.
- Prefer limit orders so you control the execution price.
- After a market-wide halt, re-enter orders if needed because prior pending orders may be cancelled.
- Monitor margins during high volatility to avoid risky actions.
Use limit orders and check order book depth near circuit levels, and re-enter orders after market-wide halts if the exchange cancelled your pending orders.
What if...
| Scenario | Outcome |
|---|
| Stock hits upper circuit | You can sell at the circuit price, but cannot buy due to no sellers. |
| Stock hits the lower circuit | You may place buy orders, but cannot sell due to no buyers. |
| I place an order during the circuit lock | Order remains pending unless the price range reopens and a counterparty appears. |
| Market-wide circuit breaker triggers | Open unexecuted orders are cancelled; positions stay open if margins are sufficient. |
| I do not have enough margin during a halt | FYERS RMS may square off positions to manage risk. |
| I trade commodities | Bands are product-specific; some allow staged relaxations with cooling-off periods. |
Last updated: 07 Nov 2025