What is Limit Up / Limit Down?

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Written by Afterprime
Updated 10 months ago

A limit up/down price is the maximum allowable decline or rise in the price (often by percentage) of a security in a single trading session or day. Please note that while our aftermarket CFD pricing is facilitated via the futures price, during the cash market sessions are priced by the underlying Indices' primary exchange (i.e. cash market price). 

Price limits of underlying markets can affect the ability of liquidity providers to price product. Why? Because the market in which they can hedge the exposure can be temporarily closed.  

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