Price limit is one of the important risk management methods that protects investors and prevents the market from being manipulated. Without price limit, some traders can use small amount of capital and high leverage ratio to make the contract price fluctuate significantly, causing deficit for other users. On the other hand, if the price limit rule is too simple, it will lead to the lack of vitality in the market.
Rules And Regulations of Price Limits:
Within 10 minutes after the new contract is generated:The maximum price=Spot Trading Index(1+10%),The minimum price=Spot Trading Index(1-10%)
10 Minutes and beyond after the contract is generated:The maximum price= Spot Trading Index(1+10%), Minimum price= Spot Trading Index(1-10%)
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