The Upper Price Limit Order Ratio of 15% means that the limit order price placed cannot be higher than 15% above the current market reference price. This prevents orders at extreme prices that could cause unreasonable market spikes.
The Lower Price Limit Order Ratio is also set at 15%, meaning that the limit order price cannot be lower than 15% below the market price. This serves as protection against price manipulation and ensures fair execution.
The Price Protection Threshold of 15% serves to stabilize the market by rejecting order execution if the price is too far from the fair price, thus protecting traders from extreme volatility or technical errors.
The Insurance Clearing Fee of 1.50% is a deduction applied to cover insurance or clearing fund risks. It is used to mitigate losses that may occur if positions cannot be reasonably closed during extreme market conditions.
Each of these features is designed to maintain market integrity and protect the interests of traders in the futures trading ecosystem. #VIC
