I'm considering a trading decision and wondering whether it's more advisable to buy or sell when a stock hits the lower circuit. What are the general strategies or considerations in such a scenario?
6 answers
Ilaria
Wed Nov 06 2024
If the stock's price drops by 20% during a trading session, trading in that stock halts for the day.
Daniela
Wed Nov 06 2024
The lower circuit mechanism is designed to curb excessive losses in the stock market.
SoulStorm
Wed Nov 06 2024
This mechanism sets a limit on how much a stock's price can fall on a specific day.
Chloe_emma_researcher
Wed Nov 06 2024
Once the stock's price reaches this lower circuit limit, no further selling is allowed.
Alessandra
Wed Nov 06 2024
For instance, if the lower circuit for a stock is set at 20%, it implies a maximum decline threshold.