The stock and futures exchanges have a system of stops and stops. The stock exchange stop system provides. In addition to the first day of listing, the stock 1 TWSE securities in a trading day trading price relative to the closing price of the previous trading day up or down by no more than 10%. More than the up and down limit of the commission is invalid. The usual provisions of the stop-limit system of futures exchanges. The normal range of up (down) stops for listed trading varieties is 8% of the settlement price of the previous trading day, if:
(1) when a trading variety in a trading day (the trading day recorded as the Nth trading day) appeared up (down) stop unilateral no continuous quotation, up and down stop then the N + 1 trading day the trading variety of up (down) stop range adjustment for Shi 6%.
(2) If a trading variety in the N + 1 trading day and the N trading day with the same direction up (down) stop unilateral no continuous quotation, up and down stop then the N + 2 trading day the trading variety of up (down) stop range for Shi 3%.
(3) if the N + 2 trading days and the N + 1 trading day with the same direction up (down) stop unilateral no continuous quotation quiet situation, up and down that three consecutive days to reach the same direction up (down) stop, up and down stop then in the N + 2 trading day after the close of business, up and down stop exchange will be enforced to reduce positions, prohibit the opening of new positions and improve the margin and other measures.
Occurrence of up and down stop board easily in and out of the predicament of no door. Up and down stop board up stop board, there is no sale. Want to buy can not buy, for another stop to gather energy. When the board is down. Selling without buying, want to sell can not be sold. Gathering energy for another stop.
Up and down stop system is designed to lock the maximum floating profit and loss for each trading day. Up and down to prevent significant losses. However, practice shows that. After the first up and down board, up and down board usually the next day in the opening of a very short period of time will appear up and down board, up and down board the whole trading day sealed in up and down board, the loss party to admit to lose want to close the position also can not get out. The risk is unabated.