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All you need to know about circuit limits in the market 

Stock exchanges set circuit limits to restrict the maximum percentage movement of a stock in a single day.

Via this, the stock exchanges convey that no matter what, this specific stock cannot increase or decrease by more than a specific percentage in a single day.

Based on the stock's volatility and the flow of news, the circuit limits are set each day.

The trading is halted when the stock hits the upper or lower limit.

The purpose of having circuit limits is to try to avoid excessive price movements.

Volatility can be extremely dangerous for retail investors and traders.

This is one of the reasons why stock exchanges have circuit limits.

Extreme fluctuation in stocks can make many investors very anxious.

Circuit limits prevent investors or traders from heavy losses due to any manipulation.

Notably, a company doesn't have any circuit limit on the listing day.

Click here to know more about circuit limits. 

Check here for more markets related stories. 

All you need to know about circuit limits in the market

By setting circuit limits, the stock exchanges are informing us that no matter what, this specific stock cannot increase or decrease by more than a specific percentage in a single day.

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All you need to know about circuit limits in the market

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