Circuit limits also referred to as price bands, are protective measures
implemented by the exchange to regulate significant price fluctuations in
stocks over a short period. When a security's price hits the upper or lower
circuit limit set by the exchange, orders for that specific stock or contract
(such as EQ, FNO, CDS, or MCX) are halted at that circuit price.
These price bands determine the allowable price range for stock trading on a
given day. Ranging from 2 to 20%, circuit limits are determined based on
factors such as liquidity, trading volume, and the category of stocks.
Information about the upper and lower circuits for a specific instrument can be
accessed through the 5paisa platform.