Upper circuit
Also called: lower circuit, upper circuit limit, lower circuit limit
The top (or, for the lower circuit, bottom) of a share's daily price band, where trading at more extreme prices is not allowed.
At the upper circuit there are many buyers and few sellers; at the lower circuit, many sellers and few buyers. Trades can still happen at the limit price if both sides exist, but often the queue on one side cannot be filled.
Holders of a share stuck at its lower circuit may be unable to sell for several days.
Example
A share with a ₹200 close and a 5% band hits its upper circuit at ₹210 and its lower circuit at ₹190.
Learn more in these lessons
- Circuit breakers and price bandsWhat is a circuit breaker in the stock market?
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