Article snapshot taken from Wikipedia with creative commons attribution-sharealike license.
Give it a read and then ask your questions in the chat.
We can research this topic together.
(Redirected from Limit down)
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 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. Similarly, index futures are often permitted to move a certain amount before the cash market opens.
