trading limit

trading 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 position limit. Chicago Board of Trade glossary
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The exchange-imposed maximum daily price change that a futures contract or futures option contract can undergo. Bloomberg Financial Dictionary

Financial and business terms. 2012.

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  • trading limit — noun 1. : one of the prices above or below which trading on commodity exchanges is not allowed during any one day 2. : a maximum number of contracts an individual is allowed to hold at one time in commodities covered by regulation …   Useful english dictionary

  • trading limit — / treɪdɪŋ ˌlɪmɪt/ noun the maximum amount of something which can be traded by a single trader …   Dictionary of banking and finance

  • Daily Trading Limit — The maximum gain or loss on a derivative contract, such as options and futures contracts, that is allowed in any one trading session. The limits are imposed by the exchanges in order to protect against extreme volatility or manipulation within… …   Investment dictionary

  • Limit Down — The maximum amount by which the price of a commodity futures contract may decline in one trading day. Some markets close trading of contracts when the limit down is reached; others allow trading to resume if the price moves away from the day s… …   Investment dictionary

  • Limit Up — The maximum amount by which the price of a commodity futures contract may advance in one trading day. Some markets close trading of these contracts when the limit up is reached; others allow trading to resume if the price moves away from the day… …   Investment dictionary

  • limit — See price limit, position limit, and variable limit. The CENTER ONLINE Futures Glossary See trading limit. Bloomberg Financial Dictionary A contract s maximum price advance or decline from the previous day s settlement price permitted in one… …   Financial and business terms

  • limit or MOC order — limit order or MOC order limit or market on close, an order type. Refers to an order which may be filled at or better than the limit during the trading day, but which if not already traded must be filled at the prevailing market price during the… …   Financial and business terms

  • daily trading limit — The maximum price range set by the exchange cash day for a contract. Chicago Board of Trade glossary …   Financial and business terms

  • limit order — An order in which the customer sets a limit on the price and/or time of execution. Chicago Board of Trade glossary An order to buy a stock at or below a specified price, or to sell a stock at or above a specified price. For instance, you could… …   Financial and business terms

  • limit move — The increase or decrease of a price by the maximum amount allowed for any one trading session. Price limits are established by the exchanges, and approved by the CFTC. They vary from contract to contract. The CENTER ONLINE Futures Glossary A… …   Financial and business terms

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