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.