markets · beginner
Price band
A price band is the permitted percentage range around a reference price within which an NSE/BSE stock may trade.
Exchanges assign a dynamic percentage band for intraday trading and may tighten it under surveillance.
Bands exchanges commonly assign are published in circulars and can change; prefer the current circular over any fixed list.
An IPO offer price band during book building is different from the intraday trading band after listing.
Circuit limits describe what happens at the edges of this trading band.
Part of the Market Pulse Term of the Day series — factual market vocabulary, not investment advice.