When a stock hits the circuit, does the options also hit the circuit.
Stocks which trade in F&O segment have dynamic circuit limits, as and when the price reaches this levels the limits are relaxed further. You can check out this post for more information on this: Doubts in circuits breakers ( circuit limits) - #2 by ShubhS9
2 Likes
The circuit limit will be relaxed further when price approaches this level (not beyond 0.05 for lower circuit ). These are in place to ensure there aren’t erroneous order entries.
1 Like
Does it mean that the underlying stock price is also dynamic as it approaches the circuit.
Right, as explained above