What is Circuit Breaker?
Circuit Breaker (also called price band, upper circuit, lower circuit) — An exchange-set limit that halts or restricts trading in a stock or index after a sharp price move, to curb volatility.
In simple terms
A stock hitting its 20% upper circuit cannot trade higher that day.
Why Circuit Breaker matters when you invest
Understanding circuit breaker helps you make better-informed decisions when you invest and trade on ROAR by DP TradeKING. Open a free account to put it into practice — ₹0 delivery brokerage and zero-commission direct mutual funds.
Circuit Breaker — frequently asked questions
What is Circuit Breaker?
An exchange-set limit that halts or restricts trading in a stock or index after a sharp price move, to curb volatility.
What does Circuit Breaker mean in the stock market?
An exchange-set limit that halts or restricts trading in a stock or index after a sharp price move, to curb volatility. A stock hitting its 20% upper circuit cannot trade higher that day.
Can you give an example of Circuit Breaker?
A stock hitting its 20% upper circuit cannot trade higher that day.
Related terms
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