position limit

position limit
The maximum number of speculative futures contracts one can hold as determined by the Commodity Futures Trading Commission and/or the exchange upon which the contract is traded. Also referred to as trading limit. Chicago Board of Trade glossary
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The maximum number of futures contracts permitted to be held by speculators or spreaders. The CFTC establishes some position limits, while the exchanges establish others. Hedgers are exempt from position limits. The CENTER ONLINE Futures Glossary
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An exchange established limit on positions held by one person or entity. (Also called trading limits). Chicago Mercantile Exchange Glossary
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A limit set by an exchange which restricts the number of contracts a person or group of connected persons may hold in a particular product. Position limits are put in place to ensure that entities cannot establish a dominant and potentially destabilising position in a product (sometimes known as 'cornering the market'). Position limits are common on many US exchanges. Currently, there are no position limits in existence on UK exchanges. Dresdner Kleinwort Wasserstein financial glossary
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The maximum position, either net long or net short, in one commodity future or in all futures of one commodity combined which may be held or controlled by one person. Exchange Handbook Glossary

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   The maximum position, either net long or short, which may be held by a dealer, a group of dealers or a dealing room. The limit can cover any financial instrument such as shares, foreign exchange and futures, and is usually expressed as a cash amount. It restricts the amount of risk that a particular dealer can be exposed to.

Financial and business terms. 2012.

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