What are the consequences for cryptocurrency exchanges when the limit up or limit down rules are triggered?

1 answers

• Dec 16, 2021 · 3 years ago
  When the limit up or limit down rules are triggered in cryptocurrency exchanges, it can have a significant impact on the market. These rules are designed to prevent excessive price movements and maintain stability. When the limit up rule is triggered, it means that the price of a cryptocurrency has increased by a certain percentage within a specified time frame. This can lead to a temporary halt or restriction of trading to prevent further price increases. On the other hand, when the limit down rule is triggered, it means that the price has decreased by a certain percentage within a specified time frame. In this case, trading may also be temporarily halted or restricted to prevent further price decreases. These measures are put in place to protect investors and prevent market manipulation. While they can disrupt trading activity in the short term, they ultimately contribute to a more stable and secure trading environment.
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