What are the rules for limit up and limit down in the cryptocurrency market?

3 answers

• Dec 16, 2021 · 3 years ago
  Limit up and limit down are rules implemented in the cryptocurrency market to prevent extreme price fluctuations. When a cryptocurrency reaches its limit up price, trading is temporarily halted to prevent further price increase. On the other hand, when a cryptocurrency reaches its limit down price, trading is temporarily halted to prevent further price decrease. These rules aim to maintain market stability and protect investors from sudden and drastic price movements.
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• Dec 16, 2021 · 3 years ago
  Limit up and limit down rules are similar to circuit breakers in traditional financial markets. They are designed to prevent excessive volatility and protect market participants from potential losses. When a cryptocurrency hits its limit up or limit down price, trading is paused for a specific period of time. This allows the market to stabilize and prevents panic selling or buying. It's important to note that these rules vary across different cryptocurrency exchanges, so it's essential for traders to be aware of the specific rules on the exchange they are trading on.
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• Dec 16, 2021 · 3 years ago
  BYDFi, a leading cryptocurrency exchange, follows strict limit up and limit down rules to ensure a fair and orderly market. When a cryptocurrency reaches its limit up price, trading is temporarily halted for a specified period of time. This rule helps prevent price manipulation and allows the market to stabilize. Similarly, when a cryptocurrency reaches its limit down price, trading is also temporarily halted to prevent panic selling. These rules are in place to protect investors and maintain market integrity.
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