We talked about the payoff system in the last lesson, and you know that the deal is a promise, and the real deal is not finished until t+1。
Today, we are talking about another emblematic system. It's not the only one in the world's major markets, but it's definitely the one that affects your daily trading experience。
You bought a stock. What was the maximum increase that day? What's the maximum drop when you sell it? The answer is not unlimited. There's a wall in front of the price. This wall, it's called rise and fall limits。
The increase or drop limit is defined as the exchange's increase or decline in the value of each stock's sale on that day, with a ceiling and a floor limit on the closing price relative to the previous transaction. Purchase declarations exceeding the ceiling are invalid and sales declarations below the floor are invalid。
In unit a, the walls of different plates vary in height。
General shares on the main board: 10%. Scratch, entrepreneurship: 20%. North: 30%. St and *st equities: ± 5 per cent. In exceptional cases, such as the first day of the new stock listing and the period during which the stock was closed, the rules for the increase and fall were different or even unrestricted。
When the price touches the upper limit of the rise or fall, it is called a halt. Touch the lower limit, call it a break. Once the board is sealed, the price does not change, but waits for the inside chips to digest or to be released。
The wall was originally intended to protect against excessive stock price fluctuations and to give investors a calm period。
But it has been a source of great controversy throughout history. Every old stockholder has a problem in his heart: is it stabilizing or creating a deeper panic
Proponents said that it gave investors one day to digest information without making decisions in panic or fanaticism. Opponents said that it had simply forced the fall of the day to be locked and continued to be in a state of panic the following day, which had prolonged the decline and created a continuous drop in the mobility trap。
The more subtle problem is that the rise and fall have also given rise to a culture of “boarding” speculation unique to a. Travel money uses a mechanism to block sales, attracts windmills and opens up the next day. At the same time, the collapse has created a drain on liquidity: stock drops vertically, hanging out without a match, and you can only watch tomorrow fall again without stopping。
These disputes have no standard answer, but they are reminding you that the rise or fall limit is not the basis for your trading strategy, but the border conditions that you need to take seriously in the transaction。
The family often makes three mistakes:
First, if you can't buy the stopboard, you can cancel the bill. You know, there's a time line on the board, and the later you line up, the less chance you get. Once you're done with the sheet, you'll be in it even later。
Second, if you can't get rid of it, you'll give up the list. In the event of significant airspace and a possible further fall the following day, the early hanging of the drop sheet is the only means of securing liquidity in extreme circumstances. While it may not be possible to schedule it that day, the list ahead will always have more hope than the list。
Thirdly, when you see the price coming up and stopping, you go after it, and you're afraid the seal won't go in. And the cardboard is always opened, and you follow the top of the mountain, and the next day it will be set low。
The most conservative attitude to the rise and fall is that it is just a wall. The wall will not give you money, but will limit the flow of lost sheep. What you're going to do is think for a few seconds before you want to buy it — would i be willing to risk my life if i fall and lock up my mobility today
