Locked Limit Up

(redirected from Locked Limits Up)

Locked Limit Up

A price that a futures contract may not exceed on a given trading day. For example, if the locked limit up is $25 for a given contract and it previously had been trading at $22, the exchange will not allow the contract to trade above $25. A futures exchange sets a lock limit in order to protect investors from the excessive volatility often involved in futures trading.