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 ?
A fixed exchange rate system would be introduced for the florin against the euro--say with a fluctuation limit 5 cents in either direction from parity.
In addition, the price fluctuation limit for block trade will be widened to 7% effective from 12th May 2008.
0 per share with a price fluctuation limit of 30 per cent up or down, which will be permitted only for the first day of listing; however, on the second day and thereafter a price fluctuation limit of 10 per cent up or down will apply as is the case for all other listed companies.