What is the impact of the limit on close feature on cryptocurrency price fluctuations?

3 answers

• Nedas GendrolisSep 01, 2022 · 3 years ago
  The limit on close feature refers to a trading mechanism that allows traders to place limit orders that are executed only at the closing price of the trading session. This feature can have a significant impact on cryptocurrency price fluctuations. When traders use the limit on close feature, it can create a more stable and predictable trading environment. By setting a limit order at the closing price, traders can avoid sudden price swings and reduce the impact of market manipulation. This can lead to less volatility in cryptocurrency prices and provide a more secure trading experience for investors.
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• MST ESMA KHATUNJun 27, 2025 · a month ago
  The limit on close feature is designed to prevent large price fluctuations at the end of a trading session. It helps to maintain stability in the market by allowing traders to set a maximum price at which they are willing to buy or sell a cryptocurrency. This feature can reduce the impact of panic selling or buying, as traders can set limits that prevent them from making impulsive decisions based on short-term price movements. Overall, the limit on close feature can contribute to more stable and less volatile cryptocurrency price fluctuations.
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• Naresh DewasiOct 20, 2020 · 5 years ago
  The limit on close feature, also known as LOC, is a trading mechanism that is available on some cryptocurrency exchanges. It allows traders to place limit orders that are executed only at the closing price of the trading session. This feature can have a significant impact on cryptocurrency price fluctuations. By setting a limit order at the closing price, traders can avoid the impact of sudden price movements that often occur during the trading session. This can help to reduce volatility and provide a more stable trading environment for investors. However, it's important to note that the impact of the limit on close feature may vary depending on the specific cryptocurrency exchange and market conditions.
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