When the market starts to swing wildly or hits its daily price limits, staying in a trade can spell trouble. DO NOT stay in a trade near limit up or limit down levels! Here’s what you need to know:
Track Price Limits: Keep a close eye on daily price limits. If a market hits a price limit, trading can halt, and you might be unable to exit your position. Always be prepared. You can check the daily limits here. Knowing these limits can save you from sudden market halts and big losses.
Rithmic Platform Issues: Sometimes, the Rithmic platform might experience technical problems that can disrupt your trades. If your account is affected, it could be disqualified. Avoid trading near limit levels to prevent this from happening.
Erratic Movements: Flash crashes, big news events (like Fed announcements), or other unexpected movements can cause platform lag or data delays. These events can disrupt your trades. Remember, any issues caused by platform lag, data glitches, or hardware problems are not covered, and hitting your account’s threshold during these times can end your evaluation.
In short, avoid trading near limit levels, especially during volatile times, and stay aware of the risks when markets get erratic!