Trading & Market Structure

Price Limit

Definition

What is Price Limit?

The maximum permitted price movement during a trading period.

Example in practice

A share cannot rise or fall by more than the exchange's daily limit.

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The highest price a buyer is currently willing to pay for a security.

The lowest price a seller is currently willing to accept for a security.

The difference between the best available buying and selling prices.

An instruction to buy or sell immediately at the best available prices.

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