I just realized that quite a few people still don't fully understand what the ceiling price is and how it actually works in trading. Today, I want to share about this concept because it’s really important if you want to trade stocks effectively.

Simply put, what is the ceiling price? It is the maximum price set by the government during a trading session, similar to the floor price which is the minimum. These two price limits are calculated based on the reference price (the closing price of the previous session) and are applied differently depending on each stock exchange.

The calculation is not too complicated. If trading on HOSE, the fluctuation margin is 7%, so the ceiling price = reference price x (1 + 7%) and the floor price = reference price x (1 - 7%). A simple example: if a stock has a reference price of 24,000 VND, then the ceiling price will be 25,680 VND and the floor price is 22,320 VND. HNX applies 10%, and UPCOM is 15%.

I see many traders still don’t truly understand what the ceiling price is in actual trading. It’s not just a number on the screen — it directly affects your strategy. When a stock hits the ceiling with huge buy orders waiting, it indicates strong demand. If you are holding, you might wait for the next session to take profits better instead of rushing. But if it hits the ceiling and there’s strong selling pressure pulling the price down, you should consider taking profits immediately if you’re in profit.

What are the advantages of the ceiling price? It helps control excessive volatility, prevent price manipulation, and protect investors from heavy losses in a session. But it also has disadvantages — it can reduce liquidity when the market moves strongly. When too many orders are waiting at the ceiling or floor levels without matching supply and demand, trading almost stalls.

An important point is that you need to analyze the trend carefully when the ceiling or floor appears, rather than just FOMO in. The Vietnamese stock market operates on T+1.5, so you cannot buy or sell immediately within the session. Waiting, observing, analyzing, and then deciding is a safer approach.

By the way, the cryptocurrency market is completely different — it has no fluctuation limits, and prices can rise or fall freely. International derivatives markets also do not regulate ceiling or floor prices like Vietnam. This shows that the regulations of SSC in Vietnam are quite different from the rest of the world.

Does anyone still have questions about what the ceiling price is or how to apply it? I’m ready to discuss more about trading strategies when encountering these situations.