Emini S&P CNX Nifty 50 Index & E-micro S&P CNX Nifty 50 Index ?
- Thread starter md2324
- Start date
The trading limits (circuit breaker) are the limits in percentage up and down before trading is halted intraday or the entire day - depending on the level hit (ex. 10%, 15%, 20%) and the exchange rules. In a strong bull or bear market it is not uncommon to see limit lock downs or in a shock event like 911. The number I gave you (15%) is wrong since it is for the SGX (Singapore) which I enter my CNX Nifty orders from. Here is a link to the India NSE where you will see the limit rules. If you use a stop it should not really matter but it's always good to know what's the worst thing that could happen if you did not have a stop or it did not get filled.
https://www.nseindia.com/products/content/equities/equities/circuit_breakers.htm
https://www.nseindia.com/products/content/equities/equities/circuit_breakers.htm
comagnum,
Great advice, Thank you
Yeah..... I have heard that when Limit up/down days occur on the US Futures Markets, that Stops can become Irrelevant , and that the market can just blow right through your Stop, and instead of you taking a say..... 3% loss on your trade, you can suffer as you pointed out , a 10%, 15% or 20% Loss on the Trade , based on what the MAX Limit Up/Down Percent is for a Given Market on that Given Day.
Am I understanding this Correctly
Thanks so much for your help
Great advice, Thank you
Yeah..... I have heard that when Limit up/down days occur on the US Futures Markets, that Stops can become Irrelevant , and that the market can just blow right through your Stop, and instead of you taking a say..... 3% loss on your trade, you can suffer as you pointed out , a 10%, 15% or 20% Loss on the Trade , based on what the MAX Limit Up/Down Percent is for a Given Market on that Given Day.
Am I understanding this Correctly
Thanks so much for your help
Limits and stops have nothing to do with each other. If you're caught in a limit move and your stop is beyond it you're not getting out until the limit resets or it moves off the limit and you manually exit. You also won't be able to exit right at limit because there is no other side to hit. Most people don't put stops so far out that the limits become an issue and if they do they're not trading intraday timeframes anyway.
Limits control price moves only and that's it.
Limits control price moves only and that's it.
Limits and stops have nothing to do with each other
__________________________________________________
The point I was making if you have a stop (market) on and the market gets crazy volatile the idea is to have an exit so you don't have to be caught in a locked limit. I would not think any sane trader would have a stop sitting beyond the limit of the ETH which is 5% for the ES - that would be 109 points or $5,450. Of course you are a sitting duck if you're holding when the market is closed and a shock even happens - resulting in the market encountering a limit lock on the open. It is a rare event anyway, unless you trade gold. For survival it is a darn good idea to put a stop on at the same time as your entry. The sooner your stop is in the book the higher priority you get (FIFO).
__________________________________________________
The point I was making if you have a stop (market) on and the market gets crazy volatile the idea is to have an exit so you don't have to be caught in a locked limit. I would not think any sane trader would have a stop sitting beyond the limit of the ETH which is 5% for the ES - that would be 109 points or $5,450. Of course you are a sitting duck if you're holding when the market is closed and a shock even happens - resulting in the market encountering a limit lock on the open. It is a rare event anyway, unless you trade gold. For survival it is a darn good idea to put a stop on at the same time as your entry. The sooner your stop is in the book the higher priority you get (FIFO).
Last edited: