When circular logging is disabled, every single log file goes into the transactional log database, and no limit exists as to how large that database can get. When circular logging is enabled, however, the transactional log can only grow to one megabyte (1 MB) in size. After that limit has been reached, the first log file is overwritten automatically to keep the transactional log database from growing any larger. The term "circular" arises from the fact that the set of log files starts to "rotate" once the disk space limit is reached, something like a LIFO (last-in, first-out) queue.