Stock Basics Ch2. What Those Numbers Mean — Open, Close, Volume & Limit Prices Explained
Chapter 2. What Those Numbers Mean — OHLCV, Limit Prices & Market Flow
Open a trading app and numbers flood the screen. You need to be able to read them before you can invest.
1. OHLCV — One Day’s Price Story
A single day’s price movement is summarized in five numbers.
Each candlestick on a chart is a visual representation of exactly this O·H·L·C information. We cover candlestick analysis in Ch3.
2. Upper & Lower Limit Prices
Korean stock markets cap how far a price can move in a single session.
Why the cap? To protect investors from extreme volatility and maintain market stability.
3. 52-Week High / Low
| Term | Meaning | Trading Insight |
|---|---|---|
| 52-Week High | Highest price in the past year | Can signal strong momentum — but may also mean it’s overbought |
| 52-Week Low | Lowest price in the past year | Severe downtrend, or potentially undervalued |
4. Market Participants — Who Is Buying and Selling?
| 구분 | Institutional Investors | Foreign Investors |
|---|---|---|
| Who | Domestic funds, insurers, pension funds | Overseas funds and foreign institutions |
| Behavior | Medium-to-long-term, quarterly rebalancing | Sensitive to global capital flows and exchange rates |
| Influence | Strong impact on domestic mid-caps | Key driver of large-cap movements |
Retail investors (개미, “ants”) earned this nickname due to their smaller size and information disadvantage compared to institutions and foreigners.
5. KOSPI 200 — The Benchmark Index
KOSPI 200 comprises the top 200 stocks by market cap and liquidity on the KOSPI. It’s the underlying asset for most ETFs, futures, and options in the Korean market.
6. Reading the Order Book
The order book shows live buy and sell orders stacked at each price level.
| Side | Meaning |
|---|---|
| Ask (Sell Orders) | Prices sellers are willing to accept (shown in red, upper section) |
| Bid (Buy Orders) | Prices buyers are willing to pay (shown in blue, lower section) |
| Spread | Best ask minus best bid — reflects liquidity |
A wide spread means the stock is illiquid. Blue-chip stocks often trade at a 1-tick spread, while small-caps can have spreads of tens or hundreds of won.
🧠 Knowledge Check
[Quick Check]
Q. If a stock closed at ₩10,000 yesterday, what is today’s lower limit price?
① ₩7,000 ② ₩9,000 ③ ₩13,000
Answer: ① — The lower limit is −30% of the prior close. 10,000 × 0.7 = ₩7,000.
Next: these numbers form patterns — we decode candlestick charts and moving averages.
Oiyo
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