Fluctuation limit

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Fluctuation limit

The limit created by the commodity exchange that halts trading on a future if the price of the future changes, in either direction, more than a previously set amount. Also called daily price limit.

Fluctuation Limit

On a futures exchange, the maximum amount that a contract can rise or fall in price before the exchange's management institutes suspended trading. Trading on a security is suspended usually in order to discourage volatility. This is especially important for futures contracts and options, which are almost always volatile.
References in periodicals archive ?
The officials said the association is in the final stage of negotiations with the Ministry of Finance over such details as daily price fluctuation limits.
Since last summer, the krone has remained close to the floor of its ERM fluctuation limits, as the authorities have used the available scope to ease domestic interest rates.