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What Is Limit Up?

Limit up refers to a stock's price having risen to the upper bound of the daily price limit.

How it works

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

Things to watch for

A stock with favorable news that attracts a concentration of buy orders is prone to hitting limit up, but this also reflects a strongly skewed supply-demand balance, and it has limited value as a predictor of how the price will move on subsequent days.

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

What happens when a stock hits limit up?
The price will not rise any further that day. If buy orders continue to significantly exceed sell orders, some buy orders may remain unfilled and carry over.
Does limit up mean the price will keep rising afterward?
Not necessarily. Limit up simply shows that buying demand was dominant on that particular day — it does not guarantee how the price will move on subsequent days.

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