What are "limit up-limit down" (LULD) rules?

Asked 4 years ago

What is the limit up and down, and how do they work? I'm wondering what triggers LULD and how long they last for?

Osasere Okunloye

Saturday, September 18, 2021

Limit up and Limit down (LULD) are interventions employed by trading regulators to prevent volatility. Limit up is the maximum limit the price of a commodity is allowed to increase to within one trading day, while limit down is the minimum amount price is allowed to decrease to. Once this price is reached, the exchange will halt the trade in that security.





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