Price Limits & Circuit Breakers

حدود السعر ومكابح التداول

To curb excessive volatility, the Egyptian Exchange applies daily price limits — a maximum percentage a share (or the index) can move in a session — and can halt trading temporarily when a threshold is breached. These circuit breakers give the market time to absorb information and are a key reason a stock may stop moving intraday.

Example

A share approaching its daily limit stops moving further in that direction for the session even though orders keep arriving, which is why a price can appear frozen while news is still developing.

Why it matters

Limits cap how far a single session can carry a price, which slows disorderly moves but also means a share can take several sessions to reach a level the market has already decided on.

A common mistake

Reading a frozen price as a settled one. The limit constrains the session, not the eventual price — and the specific percentages and thresholds are set by the exchange and change, so confirm them with the EGX.

Related terms

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