I've been trading index options for about 20 years, and today I experienced the real-time price limit system for options trading for the first time.
It's something I hadn't experienced because the index hasn't fluctuated so significantly until now...
For futures and options, based on the most recent execution price, buy orders exceeding 1% for futures and 2% for options, or sell orders below that threshold, are rejected by the exchange.
So my acquaintance couldn't sell a put option worth over ten million won due to the index decline, and if it ends this way, it will become worthless.
It's a system where if a severe price spread occurs during trading, you can't sell even if you want to....
I wonder if they created that rule because they were worried about market manipulation using derivatives...
It's an unfamiliar experience.
