The price limit is one of the most important risk controls used to protect investors and prevents the market from being manipulated.
Without a price limit rule, a small number of traders can use a small amount of capital and a high leverage multiple to make the contract price fluctuate significantly. Furthermore, if the price limit rule is too simple, it will cause a lack of vitality in the market. There will be no premium to the spot price, thus losing the significance of the contract transaction.
In order to achieve better risk control, the specific rules of price limits will not be completely published. We will dynamically calculate the risk control rules by integrating more than a dozen parameters such as the market trading volume, position holding, percentage of deviation from the index.