Effect of Limit-Up/Down Price Change

What this video covers

• The exact anchor point for every daily price limit: the prior session's settlement price, never the open, high, low, or intraday price
• How limit up acts as a ceiling that blocks prints above the boundary, and limit down acts as a floor that blocks prints below it
• Why reaching a limit caps the printed trade but does not halt all trading, since buyers and sellers can still transact at or within the boundary
• The distinction between a limit cap and a market shutdown, and why the limit is a fence rather than a light switch
• Why buying or selling pressure continues building even when the price cannot print past the limit, making the limit a signal of severe volatility
• What a locked market is: when a one-sided imbalance leaves no counterparty willing to trade at the limit, freezing printed price movement for the session