DPR based Square off

DPR is the max allowed fluctuation in price during a trading day for the particular scrip. DPR is also known as Circuit Filter. At times circuit filters are given in percentage terms. Trading gets suspended if the maximum permissible limit is hit in either direction for the scrips in equity segment (except derivative segment) which has a DPR.

To improve risk management by reducing your losses and to protect capital, many brokers automatically squared off intraday short sell positions in the equity segment, if the price reaches near the DPR limits. The broker uses DPR based square off includes 5Paisa.

Brokers have a threshold for DPR based Square off. For example:

• 4% threshold (for Scrips with 5% DPR),
• 8% threshold (for Scrips with 10% DPR),
• 16% threshold (for Scrips with 20% DPR)

Note:

• DPR process is applicable for only intraday short selling and to safeguard your position from auction penalty.
• Circuit filters are added or updated every day by the exchange.
• There are 5 categories of circuit filters. Check live circuit filter date by clicking on the link below.
  • 2% Circuit Filter
  • 5% Circuit Filter
  • 10% Circuit Filter
  • 20% Circuit Filter
  • No Circuit Filter

Answered on 2018-12-14