When executing the algorithm, the price limit serves as a stop criterion. Once the price exceeds this limit, the algo will stop working, allowing users to manage the risks of executing forex algos. However, there are no standard guidelines for users to set the optimal price limit.
Price limits can act as a protective shield for users during flash-crash events such as the one that occurred on October 7, 2016, when the pound fell drastically by more than 6% in the space of two
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