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Glossary · PSX term

Circuit filter.

A circuit filter is the rule that caps how far a single stock can move in a day before locking.

Definition

On the PSX, the circuit filter limits price moves to roughly 7.5% or Rs. 1 from the prior close, whichever is higher, to curb extreme volatility. When a stock hits the limit it locks at the upper or lower bound.

Worked example

With a circuit filter, a Rs. 100 stock cannot trade above about Rs. 107.50 that session.

Related on PSX Clarity

Circuit breaker

More glossary terms

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Circuit breaker

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