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 classic literature ?
Being subjects either of an absolute or limited monarchy, they have endeavored to heighten the advantages, or palliate the evils of those forms, by placing in comparison the vices and defects of the republican, and by citing as specimens of the latter the turbulent democracies of ancient Greece and modern Italy.
The limits, as fixed by the treaty of peace, are: on the east the Atlantic, on the south the latitude of thirty-one degrees, on the west the Mississippi, and on the north an irregular line running in some instances beyond the forty-fifth degree, in others falling as low as the forty-second.
Penney--the head of the Egyptian medical service, who, in a small steamer, penetrated one degree beyond Gondokoro, and then came back to die of exhaustion at Karthoum--nor Miani, the Venetian, who, turning the cataracts below Gondokoro, reached the second parallel-- nor the Maltese trader, Andrea Debono, who pushed his journey up the Nile still farther--could work their way beyond the apparently impassable limit.
This fatal limit invariably brought every traveller to a halt.
It is far more rational to suppose, that the courts were designed to be an intermediate body between the people and the legislature, in order, among other things, to keep the latter within the limits assigned to their authority.
In point of fact, the country which is the scene of the following tale has undergone as little change, since the historical events alluded to had place, as almost any other district of equal extent within the whole limits of the United States.
HER wisdom too limited the number of their servants to three; two maids and a man, with whom they were speedily provided from amongst those who had formed their establishment at Norland.
Yet I exist in the hope that these memoirs, in some manner, I know not how, may find their way to the minds of humanity in Some Dimension, and may stir up a race of rebels who shall refuse to be confined to limited Dimensionality.
"True," replied the president; "but we will overcome that, for the force of impulsion will depend on the length of the engine and the powder employed, the latter being limited only by the resisting power of the former.
They may be men of a certain experience and discrimination, and have no doubt invented ingenious and even useful systems, for which we sincerely thank them; but all their wit and usefulness lie within certain not very wide limits. They are wont to forget that the world is not governed by policy and expediency.