The highest and lowest prices that a commodity or option is permitted to reach in a given trading session. Once reached, no trading occurs on that commodity or option until the following session. also called fluctuation limit or price limit. see also range.
The maximum price range allowed for a contract during a trading session, set by the exchange, and based on the difference from the previous day’s close.
The maximum price range set by the exchange cash day for a contract.
The maximum price change set by the exchange each day for a contract.
The daily trading limit is the most that the price of a futures or options contract can rise or fall in a single session before trading in that contract is stopped for the day. Trading limits are designed to protect investors from wild price fluctuations and the potential for major losses. They're comparable to the circuit breakers established by stock exchanges to suspend trading when prices fall by a specific percentage.
The daily maximum amount that many options and commodities markets are allowed to rise or fall. When a market reaches the upper limit and remains there all day, it is said to be having an up-limit day. Conversely, when a market reaches the lower limit and remains there all day, it is said to be having a down-limit day.
The maximum that many commodities and options markets are allowed to rise or fall in one day. When a market reaches its limit early and stays there all day it is said to be having an up-limit or down-limit day. Exchanges usually impose a daily trading limit on each contract.