What will happen to my intraday (MIS/CO) position in case the stock circuit limits are hit? (2024)

FAQs

What will happen to my intraday (MIS/CO) position in case the stock circuit limits are hit? ›

Hence if you have an open Sell MIS / CO position, and the stock hits the upper circuit at the time of square-off, the buy order will not get executed since there are no sellers in the market. In such a situation, your intraday sell order will get converted into delivery.

When a stock hits the upper circuit price, there are only buyers in the market, and no sellers are available. This means that it becomes difficult to repurchase the stock that was initially sold for intraday trading. As a result, the intraday trade automatically converts into a delivery trade.

Similarly, when a stock hits its lower circuit, it means that the stock's price has decreased by the maximum limit allowed for the day. In this scenario, there are only sellers and no buyers for that stock. 5. Intraday trades are converted to delivery when the upper or lower circuit is hit.

For an open Intraday buy position reaching the lower circuit: Selling the purchased shares isn't possible. The position converts to delivery, requiring adequate funds for share delivery to your Demat account. If funds are insufficient, you need to either add funds or liquidate other holdings.

Intraday (MIS/CO) orders are not allowed for some stocks due to regulatory or risk management reasons.

Your buy/sell position might not been squared off due to upper/lower circuit in that stock. In case you have bought the stock & the share is in lower circuit your shares will be sold on the next day. In case you have short sold the share & there is a upper circuit on the share the shares will be auctioned.

If they haven't, it is still an open position. As an intraday trader, all your open positions should be squared off before the market closes for trading. In the event that this does not happen, the broker will do it and charge you for it.

The best you can do to exit a stock frozen at the lower circuit is to place a limit order, near the last traded price. In case the stock experiences fresh buying anytime during the remainder of the trading session, your order will get executed.

Whenever the stock is plunging in its value drastically then the exchange can decrease the circuit limits for that particular stock. If a stock hits the lower circuit limit of 10% for continuous 2 days, in order to stop the sudden downfall of the stock, the exchange may decrease the circuit limit for the stock to 5%.

Hello Trader, There is a category of Equity Stocks on which intraday trades are not allowed. These are called T2T ( Trade 2 Trade) and BE (Book Entry) stocks. These stocks are basically penny stocks and are banned from intraday trades by the exchange to protect the interest of retail investors from market manipulators.

When should I sell my lower circuit stocks? ›

No, you cannot sell shares in a lower circuit. When a stock hits the lower circuit, trading is halted for the remainder of the trading session, preventing further selling. Investors should comprehend both the growth potential and challenges confronted by agricultural companies.

A common practice is to set the stop-loss level between 1% to 3% below the purchase price. For example, if you buy a stock at Rs. 300 per share, a 2% stop loss would be triggered at Rs. 294, helping you limit potential losses while accommodating normal market fluctuations.

Follow market trends

Intraday traders should trade in the direction of the overall market trend. This means that if the market is trending upwards, you should buy stocks, and if the market is trending downwards, you should sell stocks.

This stipulation allows traders to better control the prices at which they trade. A limit can be placed on either a buy or a sell order: A buy limit order will be executed only at the limit price or a lower price. A sell limit order will be executed only at the limit price or a higher one.

Avoiding the lower circuit stock is best since extended exposure can result in a significant loss. Placing an order at the pre-open session is the most convenient and straightforward technique for breaking out and selling a lower circuit stock. At 9 AM, you should place a sell order in the pre-market.

What is a limit order and how does it work? A limit order is an order to buy or sell a stock with a restriction on the maximum price to be paid (with a buy limit) or the minimum price to be received (with a sell limit). If the order is filled, it will only be at the specified limit price or better.

Yes, you can sell shares at the upper circuit limit if you have already bought the shares before the circuit hits. However, it is important to note that selling at the upper circuit limit may not always be the best decision.

So now when the stock hits the upper circuit, the price point of that stock cannot move above that point i.e. it has reached its maximum level for that particular trading session.

If you don't trade intraday-shares on the same day, they are delivered to your account automatically. However, it depends on the policy of the broking house. Some broking houses have classifications like intraday options and delivery options.