The price limit system, also known as the daily maximum price fluctuation limit system, refers to the requirement that the trading price fluctuation range of futures contracts in a trading day should not be higher or lower than the specified fluctuation range. Quotations that exceed this fluctuation range will be considered invalid and cannot be traded. The specific characteristics are as follows.

What are the characteristics of the futures price limit system in China?

1 For newly listed varieties and newly listed futures contracts, the range of price limit is usually 2 to 3 times that stipulated in the contract.

2 In the process of futures contract trading, when the contract price rises and falls continuously in the same direction, when there is a national legal holiday or the exchange thinks that the market risk has changed obviously, the futures exchange can adjust the fluctuation range of futures contracts according to the market risk.

3. If two or more price limits prescribed by the futures exchange are met at the same time, the range of price limits shall be determined according to the maximum value of the prescribed price limits.

4 Different contract varieties correspond to different price limits, usually between 3% and 6%.

The above are the characteristics of the price limit adjustment of China Futures Exchange compiled by Bian Xiao. From the perspective of price limit, the daily limit of futures contracts is very different from the rise and fall of stocks. Please consult the account manager for details.