The price limit system originated from the early foreign securities market. It is a trading system in the securities market to prevent the trading price from soaring and plunging, curb excessive speculation and appropriately limit the price rise and fall of each stock on the same day.
In China's A-share market, there are limits on the ups and downs, which are all 10%, that is, the so-called daily limit and daily limit. The increase of 10% is aimed at the stock price of the previous trading day, that is, if the stock price reaches 10% today, it will not increase again, and it will be restricted, but it will not affect the transaction.
Extended data:
Daily limit:
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.
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. There are also many reasons for the daily limit.
Baidu encyclopedia-stock daily limit