Hitting the ceiling or floor for the day
Some exchanges set a band a stock may move within on a single day. Reaching the top is limit up; reaching the bottom is limit down. The band exists to shield investors from violent swings, but at limit down there may be no buyer at all, so you cannot sell even if you want to.
With a $300 band around a $1,000 stock, nothing trades above $1,300 or below $700 that day.
Japan — In Japan the band is a fixed amount that depends on the price level.
South Korea — Shares on Korea's KOSPI and KOSDAQ markets may move up to 30% either way from the base price, usually the previous close, in a day (since 15 June 2015).
For learning, not investment advice. Decisions are your own.
StockFit · TrueNorthLabs Inc.