All of my questions are because of a stock I own - CG Power. I bought it at 8.70. And I have been trying to sell it since yesterday. Yesterday, I tried selling it in the afternoon, but looks like it was inactive by then (probably because of the circuit breaker). Today, I placed a Market order (no price specified) at exactly 9:15 & the order hasn’t got executed - I am assuming it hit the circuit breaker in the pre-mkt time or right after the market opened. How will I be able to sell this? Should I place a sell order in premarket time? It says that in premarket, Market orders are prioritised after limit orders - I want to give a market order because I have no clue if price is going to fall or go up. Can circuit breaker be hit even before market opens at 9:15 - i.e. in the pre-market time?
This stock has been hitting circuit breaker practically every day for 3 weeks now. First 15 days, it was hitting up circuit breakers everyday - going up from 8 to 17. Now it’s been hitting the down breaker for 3 days.
I have some questions
What would be my best strategy to sell this on Monday, assuming trading on this is not possible for the rest of the day? Market or Pre-Market? Limit or Market order?
How do I know if a stock has hit the circuit filter for the day? For e.g. now do I need to check my order book every half hour for the rest of the day to check if my order has been fulfilled? If I know that there is no trading going to happen for the rest of the day, then I don’t need to.
Let’s say there is a stock which costs around Rs. 10 & it has a circuit filter of 5%. Morning, I go and place a buy order of Rs. 10.60 or a sell order for Rs. 9.40 for exactly 1 stock. I have now managed to trigger the circuit breaker & have stop trading for the rest of the day. I can do this everyday & I will just spend around 10 Rs a day to do this mischief. What is there to stop me from doing this?
EDIT: Update - my order went through after 15-20 minutes. But I would still like to know answers to my questions - I still have 50% of my CG Power stock let to sell.
If the price reaches circuit, the trading does not stop. Trading will stop only if there are no buyers at lower circuit or no sellers at upper circuit. You can always take the opposite trade.
Best chance of selling successfully would be limit order at lower circuit price. If there are buyers at that price for quantity more than sell quantity, the order will be executed.
The idea of Circuit Breakers is to bring back normalcy to trading. Typically some grace period is given when the circuits are hit. Trading is stopped, but any trade done below circuit limits will allow the stock to be traded again. But if trades continue to be above the circuits, trading is halted for the day.
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