Recently, many beginners have been asking whether trading is allowed at the limit-up or limit-down prices, so I decided to organize my experience and share it with everyone.

First, the conclusion: both limit-up and limit-down are tradable, but the chances of execution vary greatly. This is a common pitfall many people fall into.

When the stock hits the limit-up? Basically, the queue can stretch to the horizon because there are already many people waiting at the limit-up price to buy. But if you want to sell, that's a different story—there are so many buyers that your sell order will be executed immediately. Conversely, can you sell a stock at the limit-up? Yes, you can, and it usually sells very quickly.

The situation at limit-down is exactly the opposite. At this point, there are few buyers, but many sellers, so buy orders are filled immediately, while sell orders have to wait in line. Many people get stuck holding stocks that hit the limit-down, eager to sell but unable to get a deal after waiting for a long time.

Here's an important tip: if you see a stock might hit the limit-down, don’t wait until it’s locked down before selling. The smartest move is to place your order during the opening call auction, because the trading rule is price priority followed by time priority—the earlier you place your order, the higher your priority, and the greater your chance of execution. After placing the order, don’t keep changing it; many people see it hasn’t been filled and rush to cancel and re-enter, which actually pushes their order to the back of the queue, making it even harder to execute.

In Taiwan’s stock market, the daily price change limit cannot exceed 10% of the previous day’s closing price. Once this limit is reached, the stock price gets locked and cannot move. You can easily see this on the trading screen: limit-up stocks are marked with a red background, limit-down with green, making it easy to distinguish. The order book volume is also very clear—at limit-up, buy orders are full and sell orders are empty; at limit-down, the opposite.

Many people see a limit-up and rush to buy, or see a limit-down and rush to sell—this is a common mistake among beginners. The key is to understand why the stock is hitting the limit-up or limit-down. If there is genuine strong news supporting the move, the stock might continue to rise. But if it’s just market sentiment or short-term factors, those who are caught in the trap might still have a chance to turn things around later.

So, when encountering limit-up or limit-down situations, don’t rush to act. Rationally analyze the fundamentals before making a decision. Sometimes, waiting on the sidelines is the smartest choice.