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 ?
In order to maintain a stable stock market, we have set the daily price fluctuation limits of stocks, at a maximum limit 15% of the closing price and a minimum of 10%.
Dubai: Dubai Financial Market (DFM) , the only Gulf stock market to sell shares to the public, introduced unified fluctuation limits and cut the maximum weighting of a company in the benchmark index to 20 per cent.
Opponents against price fluctuation limits argue that they serve no purpose other than to slow down or delay the price change.