These are limits that determine the price range within which a stock can be traded for a particular day. In Indian stock markets it ranges from 5% ( lower limit ) to 20 % ( upper limit ). This is used to control large movements in the price of stocks in a very short time.
In F&O, there are no circuit limits, however exchanges have fixed operating range of 30% on either side of the current price to ensure trading is done within the specified range.
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