What is the reason why the stock price has dropped to the limit but not closed?

The lower limit is a daily drop limit set by the stock exchange for stocks. That is, if the stock falls to -10% or -5% of the maximum limit, it is called a lower limit. So today, the editor is here to sort out the relevant knowledge about stocks. Let’s take a look!

Can stocks that have dropped to the limit be sold?

Stocks that have dropped to the limit may not necessarily be sold. Going out, the stock's upper limit or lower limit will not affect the order. It is just that stocks with a higher limit have fewer sell orders and more buy orders, and are queued up for transactions based on the time priority principle. The same is true for stocks with a lower limit, with fewer buy orders and more sell orders.

Time priority means that if the buying and selling direction and price are the same, the one entrusted first will take precedence over the one entrusted later. The order is determined according to the time when the trading host accepts the declaration. In other words, if the order is placed early and there are many sell orders, it is possible to sell.

Why is the stock price lower than the limit but not closed?

1. High-level shipments are lower than the limit. This kind of shipping method belongs to the market makers who are eager to cash out their profits. They take advantage of the good market index conditions or high popularity of individual stocks to ship in large quantities. The turnover rate is often sufficient, and if the market is not closed, more retail investors will buy in order to achieve the goal. All shipped.

2. It is bad for the market to fall to the limit due to panic. After a round of rising prices in the early stage, this type of limit-down is caused by the stock releasing bad news, causing retail investors to trample on each other, and the market makers take the opportunity to attract funds without blocking. However, it takes time for the news to evaporate, and the market sentiment cannot be eased in the short term. There may be a period of decline after the decline. If the market is falling, you need to wait for the market to resist the fall after the impact of the news has passed or the bullish news is announced before consideration.

3. Low limit. This type of stock falls to the limit when commitments among circulating shareholders expire, sales restrictions expire, etc., which leads to another sell-off after the stock price reaches a low level. At this time, retail investors have lost confidence in the stock, but often all the bad news is good, and the stock returns. To a reasonable valuation, if the price falls without closing the market and increases the volume, there will be funds involved. At this time, you can wait for the decline to stop and then speculate at the bottom.

How to buy and sell stocks

Stock buying means that after buying a stock, the investor’s funds become stocks and the funds will be transferred to the seller’s account ; Stock selling means that after selling the stock, the stock in the investor's hands becomes funds and the stock is transferred to the buyer's account. The buying and selling of stocks are all stock transactions. Stocks are a component of the capital of listed companies and can be transferred and bought and sold on exchanges. They are the main long-term credit instruments in the capital market.

Entrustment rules: The purchase order must be for a hundred shares (1 lot is 100 shares), and the sell order can be for odd shares (1 to 99 shares, less than 100 shares), but if it is an odd lot, Must be sold at one time; T+1 rule: T+1 means that the stocks bought by investors can only be traded the next day, and the stocks sold by investors can also be withdrawn the next day, and the funds from selling the stocks can be used Buy other stocks that day.

What are the techniques for selling stocks?

Selling operations based on selling signals: performance on the trend chart, the trend chart shows some peaking K-line charts, for example, long-term Upper shadow line, evening cross star, or some peaking forms, such as m top, arc top.

Reasonably control their positions: When selling, investors should reasonably control their positions to prevent overselling individual stocks. In addition, investors can sell individual stocks based on market conditions, individual stock announcements and other factors. For example, when there is major bad news about an individual stock, investors can take the opportunity to sell the stock.

The best time to sell: when there are three consecutive days of huge negative sales at high prices, it means that the market will turn long into short, so you can sell your holdings first; when there are three to six consecutive days of small positives or small positives at high prices or The small shade or cross line and upper shadow line represent that the high-end price is no longer willing to pursue the price upward, and the price will fall after a long period of trading.

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