Daily Trading Limit
What is 'Daily Trading Limit'
The maximum gain or loss on a derivative contract, such as options and futures contracts, that is allowed in any one trading session. The limits are imposed by the exchanges in order to protect against extreme volatility or manipulation within the markets.
Explaining 'Daily Trading Limit'
When daily trading limits have been reached, it is said to be a "locked market", and trading will halt for any trades that break the threshold or trading will close for that particular security.
Further Reading
Daily price limits and stock price behavior: evidence from the Taiwan stock exchange
www.sciencedirect.com [PDF]
… overnight period following limit moves, the larger the degree of price reversals in the subsequent trading period … Near-limit moves involve daily returns that are close to, but within, price limits … Under the overreaction hypothesis, noise traders would overreact to the new information …
www.sciencedirect.com [PDF]
… overnight period following limit moves, the larger the degree of price reversals in the subsequent trading period … Near-limit moves involve daily returns that are close to, but within, price limits … Under the overreaction hypothesis, noise traders would overreact to the new information …
www.sciencedirect.com [PDF]
… overnight period following limit moves, the larger the degree of price reversals in the subsequent trading period … Near-limit moves involve daily returns that are close to, but within, price limits … Under the overreaction hypothesis, noise traders would overreact to the new information …
www.sciencedirect.com [PDF]
… overnight period following limit moves, the larger the degree of price reversals in the subsequent trading period … Near-limit moves involve daily returns that are close to, but within, price limits … Under the overreaction hypothesis, noise traders would overreact to the new information …
www.sciencedirect.com [PDF]
… overnight period following limit moves, the larger the degree of price reversals in the subsequent trading period … Near-limit moves involve daily returns that are close to, but within, price limits … Under the overreaction hypothesis, noise traders would overreact to the new information …
academic.oup.com [PDF]
… overnight period following limit moves, the larger the degree of price reversals in the subsequent trading period … Near-limit moves involve daily returns that are close to, but within, price limits … Under the overreaction hypothesis, noise traders would overreact to the new information …
www.sciencedirect.com [PDF]
… overnight period following limit moves, the larger the degree of price reversals in the subsequent trading period … Near-limit moves involve daily returns that are close to, but within, price limits … Under the overreaction hypothesis, noise traders would overreact to the new information …
www.tandfonline.com [PDF]
… overnight period following limit moves, the larger the degree of price reversals in the subsequent trading period … Near-limit moves involve daily returns that are close to, but within, price limits … Under the overreaction hypothesis, noise traders would overreact to the new information …
www.sciencedirect.com [PDF]
… overnight period following limit moves, the larger the degree of price reversals in the subsequent trading period … Near-limit moves involve daily returns that are close to, but within, price limits … Under the overreaction hypothesis, noise traders would overreact to the new information …
www.tandfonline.com [PDF]
… overnight period following limit moves, the larger the degree of price reversals in the subsequent trading period … Near-limit moves involve daily returns that are close to, but within, price limits … Under the overreaction hypothesis, noise traders would overreact to the new information …