Trading range

Trading range

The difference between the high and low prices traded during a period of time; for commodities, the high/low price limit an exchange establishes for a specific commodity for any one day's trading.

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trading range

The high and low prices between which a specific stock or some stock average has been traded or is expected to trade. See also historical trading range.

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Trading range. A trading range means different things on different types of markets.

On a stock exchange or over-the-counter market, it's the spread between the highest and lowest prices at which a particular stock or market as a whole has been trading over a period of time.

Some of the commodities exchanges set a trading range for each commodity because of the minimum margin required to maintain a position. If the market price moves above or below the trading range, trading is halted to give the member firms the opportunity to issue margin calls and collect the required money from customers whose account values are below the margin requirements.