The following is taken from the original text on page 33 of Comparative Research Report on Main Varieties and Core Systems of Global Stock Index Option Market. The description of Taiwan Province Province is most in line with the ups and downs of the system:

At present, the price limit system of major markets in the world mainly includes the following three types: short-term entrusted price limit (price cage), intraday price fluctuation limit and fuse mechanism.

The main exchanges that adopt the price cage system are the National Exchange of India and Osaka Exchange. By controlling the price of the consignment order, on the one hand, some customers can be prevented from reporting the wrong order, on the other hand, the short-term fluctuation of the market price can be reduced and the transaction can be smoothed.

Taiwan Province Futures Exchange adopts the method of limiting the daily maximum fluctuation range of options, and its price fluctuation point is consistent with the maximum fluctuation range of futures with the same target. This method is simple and easy for investors to understand.

Exchanges in South Korea and Japan have also adopted the fuse mechanism. When the main contract of the corresponding index futures fluctuates greatly, the index options will suspend trading together and continue trading after the market sentiment eases.