In algorithmic execution, the price limit serves as the stopping criterion. The algo ceases operation once the price exceeds this limit, enabling users to manage foreign exchange algo execution risks. However, there are no standard guidelines for users to determine the optimal price limit.
Price limits can serve as a protective shield for users during flash-crash events, such as the one that occurred on October 7, 2016, when sterling fell drastically by more than 6% within the space of two
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