The maximum holding limit in pre-market is a regulation on the maximum number of shares or tokens that an investor is allowed to hold during the pre-opening trading session.
For $USUAL , Binance has limited the maximum number of tokens held to 40,000 Usual for EACH user. So, what is the PURPOSE of limiting the number of tokens held in the pre-market?
Liquidity risk control:
Pre-market usually has low liquidity and few traders. Without a holding limit, an individual or large organization could hold too many assets and create a risk of supply-demand imbalance.
Preventing price manipulation:
Holding limits help restrict the ability of large investors to manipulate prices when the market is less volatile or trading is thin during the pre-market session.
Protecting retail investors:
Holding limits create a fairer playing field, preventing large investors from holding too many assets and pushing prices up or down suddenly.
Market stability:
Limiting the number of holdings helps prevent the pre-market from becoming overloaded, facilitating more stable official trading sessions.
In simple terms, the maximum holding limit in pre-market is an important risk management tool to ensure the stability and fairness of the market before the official trading session begins. $USUAL
