I'm considering a trading decision and wondering whether it's more advisable to buy or sell when a stock hits the lower circuit. What are the general strategies or considerations in such a scenario?
            
            
            
            
            
            
           
          
          
            6 answers
            
            
  
    
    Ilaria
    Wed Nov 06 2024
   
  
    If the stock's price drops by 20% during a trading session, trading in that stock halts for the day.
  
  
 
            
            
  
    
    Daniela
    Wed Nov 06 2024
   
  
    The lower circuit mechanism is designed to curb excessive losses in the stock market.
  
  
 
            
            
  
    
    SoulStorm
    Wed Nov 06 2024
   
  
    This mechanism sets a limit on how much a stock's price can fall on a specific day.
  
  
 
            
            
  
    
    Chloe_emma_researcher
    Wed Nov 06 2024
   
  
    Once the stock's price reaches this lower circuit limit, no further selling is allowed.
  
  
 
            
            
  
    
    Alessandra
    Wed Nov 06 2024
   
  
    For instance, if the lower circuit for a stock is set at 20%, it implies a maximum decline threshold.