In the NSE system, there are two sorts of price limitations.

1. In 2014, F&O Execution Range was launched to safeguard traders from high impact fees while trading illiquid option contracts. All F&O contracts will have a live reference price, with market orders only being executed if they fall inside this range. The following table defines the range:
Segment Reference Price (Rs.) % of Reference Price Minimum absolute Range (Rs.)
Futures All 5% -
Options 0.05 to 50 - 20
>50 40% -

The following formula must be used to calculate the reference price for each contract:

• Theoretical price determined from the underlying price at market open.
• During Trading Hours — 1-minute simple average of trade prices, the reference price will be updated at 1-minute intervals throughout the day.
2. Circuit Restrictions- These limits are imposed on all F&O contracts and equities in order to prevent price manipulation. When the circuit restrictions are exceeded, NSE receives an alert and must manually release the constraints.
Unlike the execution range, the circuit limitations remain constant until either the upper or lower circuit limit is reached.