Limit


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Limit

Limit

1. The maximum amount of price change a futures contract is allowed to undergo on a given trading day. Limits are mandated by the exchanges on which futures contracts trade, and exist in order to reduce volatility in the market. It is also called a trading limit.

2. The maximum number of transactions in commodities that an individual may make on an exchange on a given trading day. Limits are mandated either by the Commodity Futures Trading Commission or by the exchanges on which commodity contracts trade. It is also called a trading limit.

3. See: Limit order.
References in periodicals archive ?
Myth #2 Limits of Liability Identified In The Certificate Will Be Sufficient And Available to Cover Loss.
Limits on Use of Passthrough Losses An S corporation passes through corporate losses to be deducted on the shareholders' personal returns.
The same business owner making $220,000 could contribute only $49,000 to a uni-401(k) plan (annual addition limit of $44,000 plus catch-up of $5,000).
On January 24th, the Idaho House of Representatives voted 50 to 20 to scuttle a 1994 statute to impose term limits.
Industry representatives readily accept renewal of the current metal limits, but the lower total suspended solids limit is another matter, says Leonard Surges, manager of environment, safety, and health for Noranda, one of Canada's largest mining and smelting companies.
The following is an example of an improper limit and improper rating under a blanket installation floater:
Wanting to sell near the high, you enter the following sell limit order: "Sell 100 shares of XYZ at $45.
Members are becoming less collegial, less efficient, and may even be more influenced by the same special interests that term limits were supposed to neutralize.
Term limit proponents in California offered all the usual reasons in favor of the idea, but its biggest attraction was left unstated: It would be the long-sought silver bullet for Willie Brown.
In one case, the owners of a construction company in business for several years as a partnership wanted to limit their personal liability.
Racing toward a deadline for the fall ballot, the Los Angeles City Council is fast-tracking a measure that would give its members four more years in office by extending term limits.
Umbrella policies have limits as high as $10 million.