Impact of Circuit Limits on Intraday Positions

What will happen to my Intraday position if the stock hits the circuit limit?

Intraday trading allows you to take leveraged positions that must be closed within the same trading day. FYERS initiates automated square-off based on whether the stock is eligible for the Closing Auction Session (CAS): 3:05 PM for CAS-eligible equity stocks and 3:20 PM for non-CAS equity stocks.

What is a circuit limit?

A circuit limit is a safeguard that restricts how much a stock can move in a given day. The upper and lower circuit limits are pre-determined by the exchange to prevent extreme price movements.

Example:

  1. Bajaj Auto Ltd. may have an upper circuit limit of ₹4992.75 and a lower limit of ₹4085.05.
  2. Trading will halt if the stock price breaches these limits.

Possible scenarios when hitting the circuit limit:

1. For an open Intraday Sell Position hitting the upper circuit:

  • No sellers are present, only buyers. You will be unable to buy back the stock, which effectively converts your position to a delivery position for auction settlement.
  • Margin Requirement: A 120% margin of the closing price will be blocked.
  • Auction Settlements:
    • Internal: On T+1 day, using the previous day’s highest bid.
    • External: Managed by the exchange on T+1, potentially incurring a penalty of up to 20%.

2. For an open Intraday Buy Position hitting the lower circuit:

  • Selling is not possible, and the position converts to delivery. You will need sufficient funds in your account to cover the share delivery to your Demat account.
  • Shortfall Scenario: If you don’t have enough funds, you’ll need to either add funds or liquidate other holdings. If you don’t manage the shortfall, FYERS will sell your holdings to cover the shortfall.
For the complete segment-wise square-off schedule, refer to What Are the Intraday Square-Off Timings at FYERS?.
Monitor your intraday positions closely and make sure to square them off well before the market closes. This helps you avoid unexpected outcomes when stocks hit circuit limits.

What if...

ScenarioOutcome
Your Intraday sell position hits the upper circuitNo sellers; position converts to delivery for auction settlement
Your Intraday buy position hits the lower circuitPosition converts to delivery; you must ensure adequate funds to settle
You miss squaring off your positionPosition will be squared off by FYERS at 3:05 PM for CAS-eligible equity stocks and 3:20 PM for non-CAS equity stocks.

Last updated:  31 Oct 2025