Why was I not able to sell?

[galib20]

Greeting to Everyone.

I had been wanting to query this for a long time.

Platform: Sharekhan online trading.

Exchange: BSE or NSE(can't recall)

Stock: Asian Oilfield services.

Way back in 2005, I had bought Asian Oilfield Services for 22 Rs. Within 30-40 days, it began to shoot up very fast and reached Rs 225 and beyond as I recall. I tried to sell my stocks to book profit. But to my indignation, I kept receiving error messages over several days, that it has been locked in circuit. I kept trying, but to no avail.

Questions:
1. Why was I unable to sell?
2. If this is a normal incident, how are ordinary traders, ever going book profit?

Best Regards,

Dr A Galib

 

[Tejas Khoday]

Hey @galib20,

When a stock gets locked in an upper circuit, it means that there are no sellers in the market. When there are only buyers and no sellers (After the buyers have purchased all stocks from the sellers), and the demand continues to rise to a point that it hits the exchange prescribed upper limits, it is called an upper circuit. In such a scenario, you can sell when the market re-opens but you most likely can't buy because there's already a queue of buy orders.

When a stock gets locked in a lower circuit, it means that there are no buyers in the market. When there are only sellers and no buyers (After the sellers have sold all stocks to the buyers), and the selling spree continues to a point that it hits the exchange prescribed lower limits, it is called a lower circuit. In such a scenario, you can buy when the market re-opens but you most likely can't sell because there's already a queue of sell orders.

Yes, it is a normal incident. I saw the chart of this stock and you're talking about the 2006-08 phase when the stock went up from 20 to 400 levels. You must exit when the market has not hit a circuit. Or you must place orders before it hits a circuit. Be vigilant.

Hope this clarifies.

 

[Team Sk]

Greeting to Everyone.

I had been wanting to query this for a long time.

Platform: Sharekhan online trading.

Exchange: BSE or NSE(can't recall)

Stock: Asian Oilfield services.

Way back in 2005, I had bought Asian Oilfield Services for 22 Rs. Within 30-40 days, it began to shoot up very fast and reached Rs 225 and beyond as I recall. I tried to sell my stocks to book profit. But to my indignation, I kept receiving error messages over several days, that it has been locked in circuit. I kept trying, but to no avail.

Questions:
1. Why was I unable to sell?
2. If this is a normal incident, how are ordinary traders, ever going book profit?

Best Regards,

Dr A Galib

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