minimum Price Limit for placing an order?

#1
There appears to be a price below which one can't place an order to buy (for a given scrip). For example, for a scrip of Rs. 100 (hundred), if you place a BUY order for say Rs. 10 (ten), then you would get an error message from the online interface, saying (something like): "The price specified is outside the limits specified by the exchange."

Do you folks know HOW that value is set and, and where do we find that value for a given scrip? Is this by any chance same as the number used for "Circuit Breaker" calculations? Also, is there any limit on the UPPER side of the price that one can quote? Meaning, can one place an order to buy a scrip of Rs. 100 by quoting for Rs. 200? - I can't experiment doing so, what if it allows and gets executed? :) Thanks in advance.
 
#2
Hi,

There are two limits for any counter, this is the circuit breaks as you mention. This is specified by SEBI, usually the value is 20% up/down.

As answer to your next question, you can place an order of 200 for a 100 rupee share, you would be bought however at 100 which is the lowest selling price of the share.

However it is more advisable not to do this bcz you have another similar option to buy at the CMP- the current market price.
 

tony

New Member
#3
hmm, i find it very funny in case of icicidirect.

You can only put SL as equal to or greater then last day close for the current day.
I feel its weird!!

All comments/suggestions most welcome
 
#4
Hi,

You can find the circuit limits for any stock on nse-india.com or bseindia.com sites.
The regulators have imposed the following limits on different stocks -
1. +/- 2%
2. +/- 5%
3. +/- 10%
4. +/- 20%
5. No limits

The information for nse is available at the link - http://www.nse-india.com/content/circulars/cmtr6232.htm

regards
 

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