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Glossary · PSX term

Price band.

A price band is the allowed range between the highest and lowest price a stock can trade at in a session.

Definition

The band is set by the circuit breaker around the previous closing price, so orders outside it are not executed. It limits how far a stock can move in a single day in either direction.

Worked example

With a 7.5% band on a Rs. 200 stock, trades must occur roughly between Rs. 185 and Rs. 215 that day.

Related on PSX Clarity

Term
Circuit breaker
Term
Upper lock
Term
Lower lock

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