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Market Terms

Upper Circuit

Definition

The maximum price a stock can reach in a single trading session.

Understanding Upper Circuit

Upper Circuit is an important concept in stock market trading. Understanding this term will help you make better trading decisions and communicate effectively with other traders and financial professionals.

Key Points

  • Basic Definition: The maximum price a stock can reach in a single trading session.
  • Category: This term is commonly used in Market Terms
  • Relevance: Essential knowledge for traders operating in Indian stock markets

Practical Example

When trading on NSE or BSE, you'll encounter upper circuit regularly. For example, understanding this concept helps you analyze market conditions, make informed decisions, and manage your trading positions effectively.

Related Concepts

To fully understand upper circuit, you should also be familiar with related trading concepts. Check out the related terms in the sidebar for a comprehensive understanding of this topic.

Related Terms

  • Bull MarketA market condition where prices are rising or expected to rise.
  • Bear MarketA market condition where prices are falling or expected to fall, typically 20% or more decline.
  • CorrectionA decline of 10% or more in the price of a security from its recent high.
  • RallyA period of sustained increases in stock prices.
  • ConsolidationA period when prices move sideways within a defined range.
  • BreakoutWhen price moves above resistance or below support with increased volume.

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