The price limit system originated from the early foreign securities market. In order to prevent the price from soaring and plunging, curb excessive speculation and appropriately limit the price fluctuation of each stock on the same day, it is a trading system in the securities market. That is to say, the maximum fluctuation range of the trading price in a trading day is a few percent above and below the closing price of the previous trading day, and trading will stop after it exceeds. The current price limit system of China's securities market was promulgated on February 2003 1996 13, and implemented on February 26, 2006, aiming at protecting investors' interests, maintaining market stability and further promoting market norms. According to the system, except for the first day of listing, the trading price of stocks (including A and B shares) and fund securities in one trading day shall not exceed 10% compared with the closing price of the previous trading day, and the entrustment exceeding the price limit shall be invalid. The main difference between China's price limit system and foreign systems is that after the stock price reaches the price limit, it does not completely stop trading, and the trading within the price limit or the price limit can continue until the close of the day. In developed foreign stock markets, when the stock market fluctuates greatly, the price limit of individual stocks is started.

The futures price limit system is the same as that of stocks, but the range varies according to different varieties, generally 3%-5%.

The upcoming stock index futures also have a fuse mechanism, which is very interesting. Suggest a look!