How to set max open files for nginx docker?

Question

My understanding is that when native nginx service runs, the process will set the required ulimit by itself. Then, how about the case for running the nginx docker container? If my understanding is right, nginx will only be able to set it inside the container but not on the host so does it mean that one needs to set in the host and the orchestration/docker-compose. Thanks in advance. Any docs on nginx docker container tuning will also be appreciated.