What is the meaning of 'luld pause' in the context of cryptocurrency trading?

3 answers

• Davis BrandonOct 18, 2022 · 3 years ago
  The 'luld pause' refers to the Limit Up-Limit Down mechanism implemented in cryptocurrency trading. It is designed to prevent extreme price volatility and maintain market stability. When a trading instrument experiences a significant price movement, the exchange may trigger a luld pause, which temporarily halts trading for a specific duration. During this pause, traders cannot execute new orders, and the market is given time to absorb the price movement. This mechanism helps prevent panic selling or buying and allows for a more orderly market.
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• Mcgowan CraneFeb 02, 2025 · 5 months ago
  In simple terms, the 'luld pause' is like a circuit breaker in cryptocurrency trading. It acts as a safety measure to prevent sudden price swings and maintain a fair and orderly market. When triggered, it temporarily stops trading to give investors time to digest the price movement and make informed decisions. This mechanism helps prevent market manipulation and protects traders from extreme price fluctuations.
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• Chess LoverDec 06, 2022 · 3 years ago
  The 'luld pause' is an important feature in cryptocurrency trading that aims to ensure market stability. When a cryptocurrency experiences a rapid price change, the exchange may activate a luld pause, which halts trading for a specified period. This pause allows market participants to assess the situation and prevents panic selling or buying. It also provides an opportunity for liquidity to return to the market, ensuring fair and efficient trading. The luld pause is a valuable tool in maintaining a healthy trading environment.
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