Suppose a nifty call option is trading at Rs. 5. with high/low of 5 and 4. If I place a sell order of Rs. 8/- or a buy order of Rs. 2/- it says RMS:out of circuit limit and my order is cancelled. During the day, the option price does go above 8/- and below 2/- then why is my order not placed. Can you explain the circuit limits on option order and why the limit cross is allowed later on? Is this applicable for other options (index or stocks) ?
@Nithin Answered it here