Limit Up/Limit Down (LULD) is a market-wide trading mechanism that protects investors and promotes fair and orderly markets. The contents of this rule are testable on the Series 24 exam, Series 55 exam, and the Series 10 exam. Candidates must understand this rule and its application.
Below, Brian Marks explains the most important aspects of the rule, and offers illustrated examples of how LULD works.
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Series 10 Exam, Series 24, Series 55 Exam