1. The price limit board locks the maximum floating profit and loss and closing profit and loss that may be added by customers and member units on each trading day, which provides an objective and accurate basis for the exchange and member units to set the initial margin level and maintain the margin level. So that the margin system of futures trading can be effectively implemented. Under normal circumstances, the margin charged by the futures exchange to its members is greater than the amount of losses that may occur within the fluctuation range, so as to ensure that the futures price will not be overdrawn when it reaches the upper limit of fluctuation.

2. The implementation of the price limit system can effectively slow down and restrain the impact of unexpected events and excessive speculation on futures prices, stabilize the market within a certain period of time, fully resolve the impact of these factors on the market, prevent the price from skyrocketing and plunging, and maintain the normal market order.

3. The price limit system makes the futures price run on a more rational track and makes the futures market play a better role in price discovery.

4. When there are abnormal phenomena such as excessive speculation and market manipulation, adjusting the range of price limit often becomes an important means for the exchange to control risks.