Limit Up/Limit Down

Limit Up/Limit Down
   The maximum advance or decline from a previous day's settlement price that is allowed in one trading session. Some markets do not trade again during the session after a limit up/down move unless prices retreat from that limit. Other markets suspend trading temporarily when limits are hit and then reopen with expanded limit levels.
   ► See also Circuit Breakers.

Financial and business terms. 2012.

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