Limit_down

Price limit

Price limit

Established amount of increase or decrease of a price in a given trading day

A price limit is an established amount in which a price may increase or decrease in any single trading day[1] from the previous day's settlement price.

In financial and commodity markets, prices are only permitted to rise or fall by a certain number of ticks (or by a certain percentage) per trading session.[1] Similarly, index futures are often permitted to move a certain amount before the cash market opens.[2]

References

  1. [1]
    "Daily Price Limits". Retrieved February 24, 2012.
  2. [2]
    Stock Index Price Limits (PDF), retrieved January 3, 2012


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