Table of Contents
Can we sell a stock in lower circuit?
The highest price a stock can reach on a particular day is the upper circuit limit. When this limit is touched, there will be only buyers and no sellers. Likewise, the lowest price that a stock can hit is the lower circuit limit and when a stock hits this limit, there will be only sellers and no buyers.
How do you short sell in a lower circuit?
To Square Off, You Need To Place A Buy MARKET Order. At Lower Circuit, Every One Is A Seller, So Ideally Your Buy Order Should Get Executed With You Making A Windfall. While Shorting the stocks, you should place your Buy Call even if it hits lower circuit. your call will get executed if less buyers are there.
How do you exit LC stock?
there is no such way to sell those stock you need to wait or put VTC order for selling once lower circuit is finish your shares will be sell.
What if I short a stock and it hits upper circuit?
For short positions(when the stock hits upper circuit – There will be no sellers for your position at the upper circuit price. A short delivery auction will be held (as you’ve sold shares that you do not hold).
How do you sell stock in the upper circuit?
- Of cource . In upper circuit sellers can sell , only restriction is on buying . Many stocks reopen for regular trading after hitting upper circuit because of the same rule .
- Like above you can buy in lower circuit but can’t sell .
- Note : Rules for derivatives stocks and index futures are different .
What happens if I sell a stock for intraday but it hits the lower circuit?
If you have an open buy intraday position & stock hits lower circuit. If a stock hits the lower circuit, you will have only sellers and no buyers. So you will not be able to sell the shares you had bought for intraday. This will again get converted to a delivery trade.
When a stock hits an upper circuit, there will be only buyers and no sellers. So, if someone wants to sell the stock, they can do so. If a stock still hits circuits, then the stock is moved to T-group where only buying or only selling (but not both during the same day) is allowed. No intraday trading is allowed.
When should I sell my upper circuit stock?
In case of upper circuit, you can sell your shares. But don’t Short sell because if you short sell than due to upper circuit you can not buy. In such case you have to pay penalty. In case of Upper Circuit you can not buy share.
What happens when a stock hits upper or lower circuit?
If a stock hit a upper/lower circuit then the trading in that stock will be stopped for a day but this rule is not applicable for those stocks which are also traded in derivative market ( future/Options till the 95\% of quantity traded). So if stock is in Cash market then it will freeze at the upper/lower circuit.
What happens when a stock hits upper circuit in NSE/BSE?
In NSE/BSE we have 3 category of stocks , 5\%, 10\% and 20\% circuit limit. If a stock hit a upper/lower circuit then the trading in that stock will be stopped for a day but this rule is not applicable for those stocks which are also traded in derivative market ( future/Options till the 95\% of quantity traded).
When should you exit a stock after an acquisition?
If the acquisition price is higher than that existing stock price, it makes sense to exit the stock. Remember an important point, if the stock is hitting the lower circuit because the overall market bias is negative, one could wait for some time for clarity to emerge.
How to sell lower circuit stocks?
There are various instances when we purchase a stock for short-term gains but instead, it starts hitting lower circuits. Today this post will inform you how to sell lower circuit stock. The best way to sell a stock that is hitting continuous LC is by placing an order during the pre-open session.