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Quantitative Finance · Glossary

What is Limit-hit continuation?

Definition 18.1 Strategies I: Equities and Futures · Chapter 18 — Asia-Specific Equity Strategies

Limit-hit continuation is the tendency of a stock that closes locked at its daily limit to move further in the same direction at the next open, because the part of the move the limit held back, and the orders queued at the limit, carry over to the next day.

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