Futures daily limit means that futures prices rise to the highest daily price of listed futures contracts stipulated by the exchange, and quotations beyond this range will be regarded as invalid and cannot be traded. There are two forms of price limit range: percentage and fixed quantity.
The daily limit is the result of buying more than selling, and then the price peaks. When the selling quantity is greater than the buying quantity, the price will fall.
Generally speaking, futures are based on the settlement price of the previous day, and the price increase of about 5% reaches the daily limit.
The futures price limit system refers to the daily maximum price fluctuation range of listed futures contracts set by the exchange, and the quotation exceeding this range will be regarded as invalid and cannot be traded.
Like stocks, futures will have ups and downs. Generally, the fluctuation range of each futures product is different.
Futures also implement a price limit system. The price limit of commodity futures varies with varieties, generally 3%-6%, and the price limit of stock index futures is 10%.
The ratio of futures price limit is generally 4%, and some are 6%. The price limit is calculated by multiplying the settlement price of the previous trading day by 4%. It is suggested to log on to the futures exchange in official website.
The daily limit price of futures is calculated like this. The settlement price of the previous trading day (note that it is not the closing price, but the weighted average of all transactions in the whole day at the time of settlement).
In the futures market, the price limit of different futures products is different. General commodity futures are 4% and 5%, stock index futures are 10%, and treasury bond futures are 2%. The futures varieties listed and traded on the first day are also subject to the price limit, which is twice the price limit in future trading days.
The scope of the futures contract is not fixed. The exchange will make temporary adjustments according to the fluctuation of futures prices and the change of positions. When the trading day of a futures contract closes, the fluctuation range of the second and third consecutive trading days will temporarily expand, which is called expansion. For example, the fluctuation range of futures products of Zhengshang Institute for three consecutive days is 4%-7%- 10%. If there is a daily limit or a daily limit for three consecutive trading days, the exchange will suspend trading for one day.