RE: Odd?18 May 2021 09:21
? bubble next to no electronic trading on my IG takes you to the below specific help page:
"What is a ‘limit up’ and a ‘limit down’?
In the event of severe market volatility, regulated central exchanges such as the CME may sometimes suspend trading on one side of the underlying market. These suspensions are called ‘limit up’ or ‘limit down’, depending on the direction that the market has moved. These limits can also be referred to as ‘circuit breakers’.
Both limit ups and limit downs are used to prevent certain assets reaching excessively high volatility levels.
As trading is suspended in the underlying market, it will impact how you trade with us.
What is a limit up?
A limit up is the maximum amount that the price of a stock, commodity or index futures contract will be allowed to increase in a single trading session.
This means that buying the underlying market is suspended by the exchange.
You’ll therefore only be able to sell – whether to open or close positions– when a limit up is in place. To sell with IG, you’ll have to phone us, but please be aware that prices may be significantly higher when the market re-opens.
What is a limit down?
A limit down is the opposite to a limit up. It sets the maximum amount that the price of a stock, commodity or index futures contract will be allowed to decrease in a single trading session.
Limit downs seek to prevent panic selling and market crashes. This is because if more and more traders begin to sell in a panic, the price of the underlying commodity will decrease in line with increased supply and lower demand in the market.
This means that selling the underlying market is suspended by the exchange.
You’ll therefore only be able to buy – whether to open or close positions – when a limit down is in place. To buy with IG, you’ll have to phone us, but please be aware that prices may be significantly lower when the market re-opens.
Current limit up/limit down bands
The limit up and limit down thresholds are fixed by the exchange on which the assets trade, and are set for each asset. As such they are subject to change.
For more information on a particular exchange’s thresholds and the latest threshold prices, you can look directly on the exchange’s website."
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