A limit order (also known as a limit order) is an order to buy and sell foreign exchange contracts at the price determined by customers or at the price of performance time. It is the second most frequently used instruction in foreign exchange transactions, which specifies the highest price that the buyer is willing to buy or the lowest price that the seller is willing to sell.

For example, if a customer wants to buy shares of Company B in 30 yuan, and the current price is 33 yuan, even if the share price? If it falls to 30. 125 yuan, the brokerage firm will not make this entrustment. On the other hand, if the customer wants to sell shares in 33 yuan and the current price is 30 yuan, then the broker will wait until the share price reaches 33 yuan before entering the market.

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Price limit entrustment strategy

The most important thing is to determine a reasonable price limit when adopting the price limit entrustment strategy. For example, if you buy securities, the price limit is too high, and it will not play the role of the price limit. If the price limit is too low, it will be difficult to make a deal and miss the opportunity to buy.

Generally speaking, the entrusted price is based on the current market price and is flexible and fixed according to the short-term market trend. China's Shanghai Stock Exchange and Shenzhen Stock Exchange have both adopted the method of entrustment of price limit.

After receiving such entrustment from customers, brokers can only buy securities at or below the price limit proposed by customers, and sell certificates at or above the price limit. If the price of the securities in the market meets the customer's price limit requirements, the Committee may terminate the transaction immediately. If the price does not meet the requirements, the broker will have to wait patiently.