Does limit down mean I can't sell my shares?

Trades cannot execute below the day's lower price-limit bound, but you can still place a sell order at that price or higher. If there are very few buyers, however, the order may not actually be filled.

Can limit down continue for multiple days?

Depending on the nature of the bad news, selling pressure can remain dominant over subsequent days, resulting in limit down occurring on multiple consecutive days. That said, future price moves cannot be stated with certainty.

What Is Limit Down?

Limit down refers to a stock's price having fallen to the lower bound of the daily price limit.

How it works

Once a stock's price reaches the lower bound of its daily price-limit range (based on the previous day's close), no trade can execute below that price for the rest of the day. This state is called limit down.

Things to watch for

A stock with unfavorable news that attracts a concentration of sell orders is prone to hitting limit down. As with limit up, this reflects a strongly skewed supply-demand balance and should be recognized as a risk of a sharp drop in the value of a holding.

This article is provided for general informational purposes only and does not recommend or solicit the purchase or sale of any specific investment method or security. Final investment decisions are your own responsibility.

Frequently Asked Questions

Does limit down mean I can't sell my shares?: Trades cannot execute below the day's lower price-limit bound, but you can still place a sell order at that price or higher. If there are very few buyers, however, the order may not actually be filled.
Can limit down continue for multiple days?: Depending on the nature of the bad news, selling pressure can remain dominant over subsequent days, resulting in limit down occurring on multiple consecutive days. That said, future price moves cannot be stated with certainty.

What Is Limit Down?

How it works

Things to watch for

Frequently Asked Questions

Related terms