What does limit down mean in Forex trading?

Asked 5 years ago

I came across limits in trading, and I'm wondering how these limits affect the futures I'm trading? Are they implemented by the brokers?

Limit down price Forex market

Osasere Okunloye

Saturday, September 18, 2021

Limit down is one of the Limit-up-Limit-down (LULD) rules set by regulators to prevent volatility. When trading futures, the limit down price is the percentage decline possible in one trading day. When the price hits the limit down, the exchange can either decide to halt the trade or change the limit down price to allow further trading.