If and when Dow, S&P and Nasdaq opens limit down for several days – how can you protect yourself?
Sam Adelton
Mar. 6, 2007

Many people are deeply invested in stock markets around the world. Sometimes they do not even know that. The 401(K) retirement investment is common in tocks.

Analytics are pointing to a massive collapse in stock prices. In recent days computer driven markets show little time in going limit down. Every stock market indices have circuit breakers. That means after a fall of say 500 points, Dow will not fall any further. In futures markets, it is called limit down. When limit down occurs, there may not be any official bids. That is dangerous because the next day it can go again limit down. If markets do not trade, you will not be able to exit the market. It is a horrific experience to see day by day the ruin of personal wealth.

Some smart investors are buying across the board put options to protect them from consecutive days of ‘limit down’ effects. It is the best way to protect oneself from here fall of stock markets.

If and when Dow, S&P and Nasdaq opens limit down for several days – how can you protect yourself?
Sam Adelton
When limit down occurs, there may not be any official bids. That is dangerous because the next day it can go again limit down. If markets do not trade, you will not be able to exit the market.
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