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What does the price limit mean?
The price limit market is two different trading methods. Price limit refers to buying or selling a security at a fixed price. Therefore, when the market price reaches the limit level, this order will be automatically executed. Market transaction refers to the execution of orders at the current market price. These two trading methods are very useful when investors make trading plans. However, it is necessary to carefully consider the market environment and determine which trading method to implement. In terms of risk control, limit trading may be safer, but for investors who want to make a lot of transactions in a very short time, market trading may be more effective.

Limited market prices are also widely used in the futures market. In futures trading, buyers and sellers can selectively use any trading method. If traders want to buy or sell a commodity in large quantities when the market trend is obviously favorable, it is best to choose the market price trading method. This way can ensure that the order can be executed in the shortest time, and it is usually the most likely to be profitable. However, once the market reverses, market transactions will expose investors to greater risks. Therefore, in the case of uncertain market fluctuations, the price limit method is more suitable for traders.

Generally speaking, the key to choosing the market trading method of price limit is the ability of traders to grasp the market trend. For investors, it is very useful to use market trading when the time is ripe and limit trading when controlling risks. This requires investors to have sufficient market knowledge and judgment. No matter which trading method is chosen, traders should always pay attention to the market dynamics and control the trading risk within an acceptable range.